Here’s Why Bitcoin Price Is About To Break Out – Bitcoin Magazine
Let’s take a look at what could drop the price in the short term, but could also add to Bitcoin’s long-term uptrend.
Bitcoin price fell slightly below USD 30,000 at the beginning of the week but has had a relatively stable week. While nothing substantial drove Bitcoin price up, the market rebounded relatively easily after a brief dip to $ 29,000 on multiple exchanges. However, towards the end of the week, it began rising again towards $ 34,000. Despite the recent drop to below $ 30,000, Bitcoin remains very optimistic about the outlook for the coming months.
Bitcoin vs. price comparison table. S2F source: Data Source
As in last week’s chart, the long-term outlook for Bitcoin is relatively optimistic. The graph above compares the price of Bitcoin to its stock-to-flow (S2F) ratio in US dollars since its inception in 2009. The data clearly shows again that Bitcoin is likely to break out and hit $ 100,000 in the coming months -Mark will exceed mark. The S2F model compares the inventory (availability) of an asset or commodity with the electricity generated.
Let’s take a look at the reasons why Bitcoin is soaring in price in the coming months. By the end of this week, Bitcoin’s mining difficulty will drop faster than ever before. This often has a bullish effect as miners use less energy to generate bitcoins. However, the miners are struggling with China’s crackdown, liquidating bitcoins and spending money either to postpone or close their operations altogether. It will likely take a few weeks, if not months, to resolve this.
Then there is El Salvador, a country that accepts Bitcoin as legal tender. Other countries also want to follow in El Salvador’s footsteps. Earlier this week, Tanzania announced it would do the same. In September, every El Salvador citizen will receive $ 30 worth of Bitcoin through Chivo’s mobile wallet. Millions of people will receive Bitcoin in one of the largest airdrops to date.
Taproot will be activated on the Bitcoin network in November, offering improved security, higher speeds and more potential for smart contracts. Bitcoin is growing faster than ever and is not yet reflected in the price. But again, we are constantly comparing Bitcoin to Fiat and rating it in Fiat, which is ironic if we use Bitcoin to overthrow the aging and failing global financial system.
It is only important that a Bitcoin is equal to a Bitcoin.
News about price increases
Last week, Jack Dorsey and Elon Musk announced they would be giving a public talk on Bitcoin in late July, which sounds optimistic, although you can never be sure about Musk.
Speaking to Bloomberg, Michael Saylor said he was not interested in short-term price action. He said there was no reason Bitcoin couldn’t be a $ 100 trillion fortune, and if that’s a conservative estimate, we’ll still have 30,000% profit over the next few years. The CME Group also announced this week that micro bitcoin futures contracts traded on the platform have exceeded 1 million contracts since May, indicating increased demand for everything related to bitcoin
Finally, Q2 Holdings announced that it will partner with New York Digital Investment Group (NYDIG) to bring Bitcoin trading to over 18 million customers. This will continue to drive Bitcoin adoption around the world and prompt other financial institutions to offer similar services.
While Jack Dorsey and Elon Musk’s decision to speak publicly about Bitcoin in July is seen as positive news, there are several factors that make it a bearish event. Musk has proven time and again that he is here to manipulate the market and continue his campaign of disinformation against Bitcoin, and no one can be certain that he will not change his mind.
In South Africa, the government has reiterated its stance against buying cryptocurrency abroad or sending money abroad to buy crypto. The Africrypt scandal also turned South Africa into a hub for crypto scams after Mirror Trading International’s Ponzi scheme collapsed in 2020.
Over the weekend, the British government warned that Binance cannot conduct “regulated activities” in the country and will certainly do the same with other exchanges.
Instead of paving the way for crypto adoption, some countries are increasingly pushing for bans and anti-crypto narratives. It doesn’t look like this is going to end anytime soon, and as Bitcoin adoption increases, more and more countries will resist, trying to maintain the control they have over the outdated financial system and the people themselves in turmoil float.
The near-term outlook is bearish. Bitcoin appears to drop below the $ 30,000 mark at least once again in the coming weeks. However, the long-term outlook remains too optimistic. As weekly charts and reviews continue to show that Bitcoin is headed for a breakout. Bitcoin gives billions of people financial freedom and as more individuals, institutions and even countries adopt Bitcoin, the price of fiat money will skyrocket.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to BitcoinMagazine