Categories: Market

Crypto this week July 18th – 24th (market, BTC …)

Market perspective

Hi everyone, it’s going really fast, not another week has passed.

This week I want to share with everyone some views on the value of Bitcoin, or in other words what are the main factors influencing the price of Bitcoin?

Well, that’s basically a hard question to answer because it gathers a lot more information than you think. However, to cut the length short, I will focus on the main reasons.

In the short term: emotional.
Long term: regulatory, institutional and technological investments.

And the above reasons are mainly for cryptocurrency projects in the market.

# 1 – emotions

It’s very easy to see, I’m sure that you were trapped in “emotions” even when making investment or trading decisions in the cryptocurrency market.

Elon Musk can be a prime example of whether he’s driving market sentiment by tweeting about Bitcoin or Dogecoin. The change in market sentiment around Bitcoin, following tweets about the environmental problem caused by Bitcoin mining, has sparked dumping in the market so far.

This is a picture of Bitcoin searches on Google over the past 12 months in the US.

You will find that once China takes action against the miners, interest wears off. The reason is sometimes quite simple, that the miners sold the already accumulated Bitcoins (because they had to) and thereby the price of Bitcoin fell, which then briefly changed the mind of Bitcoin.

It’s still “feeling”, isn’t it?

# 2 – technology

This is important when it comes to the future of a project.

Bitcoin is successful with its history as the leading cryptocurrency with store of value and also has viable, proven technology. It is possible that in the near future it will be important to evolve other things on the Bitcoin mainnet as transactions create more value. Long-term storage can lose value over time.

To do this, Bitcoin has planned to update Taproot in November so that the network would enable smart contracts like Ethereum, but should be all the applications that Ethereum has.

Just like Ethereum, Bitcoin needs to solve the problem of speed, and ETH is doing it by switching to a proof-of-stake (POS) authentication system. Bitcoin will be a proof of work (POW).

I also don’t know how exactly they’re going to deal with the speed issue, but that’s something that needs to be done. Lightning Network is supposed to help solve this problem, but so far the LN network has not gained much acceptance.

Summary, In the long run, technology will still greatly affect the value of any project.

# 3 Investing at the institutional level

It is clear that the recent Bull Run was driven by institutional investors. Many of them are well-established Wall Street firms that have invested through Grayscale.

Bitcoin is currently still the largest coin by market capitalization. Its market capitalization is over $ 1 trillion and is currently $ 600 billion. If bitcoin hit $ 93,000, it would likely take an additional $ 1.2,000 billion in purchases (a number that would likely need less) and no one but large institutions would have that money.

Summary: no institutional investors, no bullish Bitcoin.

# 4 Statutory regulations

In fact, the latest bull cycle ended with negative regulatory reviews. The Chinese government’s stance directly affects Bitcoin mining (mining is considered a fundamental activity to protect the network).

If you’re looking for positive news, the SEC needs to approve a Bitcoin ETF. We’ve been waiting for this since 2017 and it didn’t happen. The SEC postpones this topic from year to year.

If anything suggests the next bull run won’t happen before 2022, it is the SEC’s decision. This can be a pretty long wait.

Conclude

What people don’t know is that if wealth is created in a bull market, the foundation for that wealth must be amassed in a bear market.

Expect the best for what you believe in.

*** The article is edited from the opinion of the author L. Sebastian Purcell, PhD.

Events of the next week

Notable events for everyone next week:

July 20th – July 22nd: Ethereum Community Conference 4 EthCC is the largest annual Ethereum event in Europe focused on technology and community. The focus of the three conference days is the exchange and learning of knowledge.
July 20th – July 21st: Mining disruption in 2021 is the premier digital asset summit in North America where you can dive deeper into enterprise solutions and leading innovations in blockchain technology and cryptocurrency mining. .
July 20th – July 20th: word is a Bitcoin-focused initiative that aims to demystify and shape mainstream narratives about Bitcoin, explain how organizations can and should adopt it, and raise awareness of the regions where the network is in need of support.
July 22nd – July 23rd: REDEFINE TOMORROW 2021 is a two day Global DeFi and Blockchain Summit where you meet an all-star list of the best DeFi innovators and changers from around the world to discuss the next financial era. .