4 Of The Most Bullish Events for Bitcoin Happening Right Now; What Does it All Mean?
- The most bullish thing: Giving access to the bulk of money
- Bitcoin transferred $11 trillion since its inception
- Repo crisis will have “big bullish implications,” for Bitcoin
- BTC is a threat to the US Dollar
On Wednesday, Bitcoin price plunged more than $700 that took the leading cryptocurrency to just under $7,300. However, avocados knew that BTC would crash.
*BITCOIN DROPS TO LOWEST LEVEL SINCE JUNE
The avocados told me this would happen. pic.twitter.com/5rOyE3Ohak
— Tracy Alloway (@tracyalloway) October 24, 2019
Since this 10% drop in BTC, the price has gone up and now trades around $7,452, as per Coincodex. Trading volume, that surged above $500 million has now dropped back to $337 million. Bakkt that saw record volume yesterday is also down today, currently registering 211 BTC.
However, the pain might not be over. Mike Novogratz warns that the digital currency could move a next leg lower to $6,500.
“There’s been a bunch of negative things that have happened recently,” the CEO of Galaxy Digital Holdings said in an interview with CNBC. He added that the leading cryptocurrency will “need new energy” to make it back to the $8,000 range.
— Squawk Box (@SquawkCNBC) October 24, 2019
According to Novogratz, US SEC stopping the messaging app Telegram from launching its coin also contributed to the digital asset’s fall to a five-month low. “That was a kick in the stomach to the overall crypto ecosystem,” he said.
But the market has several bullish events for Bitcoin.
The Most Bullish Thing
During the interview, Novogratz further stated that if Fidelity allows its customers to buy Bitcoin, that would be the most bullish thing for the flagship cryptocurrency.
He shared how the crypto community thought that if there was an exchange-traded fund (ETF), more people would have access to the digital asset, just like with gold. When gold ETF came, the prices of yellow metal shot up.
The bulk of the money, Novogratz said still resides in older people’s brokerage accounts while youths are the one who loves Bitcoin and phones but doesn’t have the money yet. As such, giving access to that bulk of the money is what will push Bitcoin, he said.
“The most bullish thing would be for Abby Johnson (CEO of Fidelity Investments) to say ‘all my 26 million users can now buy Bitcoin on my platform.' Hasn't happened yet,” Novogratz added.
Bitcoin Transferred $11 Trillion since its Inception
The Bitcoin network continues to grow, with the number and value of transactions increasing every passing day. The network is currently registering on an average of $10 billion in transfers each day. In total, Bitcoin has completed transactions worth more than $11 trillion since it was created in 2009.
#bitcoin transferred $11 trillion in wealth (2009-2019)
Still going strong at $10 billion each day pic.twitter.com/jAphbfYUzh
— PlanB (@100trillionUSD) October 24, 2019
The Bitcoin network also has 9,343 active nodes, which is a testament to its decentralized nature. It is further expected to get a significant push with HTC’s Exodus S1 supporting a full Bitcoin node.
Last month, the financial system ran out of cash and it is nowhere near over yet. Wall Street is now getting worried that the aggressive efforts of the Federal Reserve to control short-term borrowing rates have more danger ahead.
Fed injected billions of dollars in liquidity to keep interest rates artificially low and continues to do so.
— TD Ameritrade Network (@TDANetwork) October 18, 2019
This Ikigai’s Travis King says will have “big bullish implications,” for Bitcoin, a sentiment hinted at by Gabor Gurbacks, digital asset strategist at VanEck as well.
He wrote on Twitter,
> The #Fed to add *$120 billion* liquidity *per day* to repo markets.
> That is a massive 60% increase in the overnight repo liquidity availability (from $75 billion to $120 billion).
> #Bitcoin’s market cap is $135 billion. Think about it for a moment.
— Gabor Gurbacs (@gaborgurbacs) October 24, 2019
A Threat to the US Dollar
Another bullish argument for bitcoin is voiced by Congressman Brad Sherman, albeit unknowingly. While grilling Facebook’s Mark Zuckerberg on his crypto project Libra and other matters, Sherman blasted the digital asset saying it either doesn’t work which means investors lost a lot of money or,
“It does achieve its objectives perhaps and displaces the US dollar or interferes with the US dollar being virtually the sole reserve currency in the world,”
It hasn’t been the first time that the Congressman shared these views about Bitcoin. Previously, US President Donald Trump also jumped on defending the US dollar, need to clarify that there’s only one real currency.
These comments by lawmakers only point out how far Bitcoin has come and speaks about its mantle that has people feeling threatened about US dollars’ status of the world reserve currency.