At the time of writing, Bitcoin is trading marginally up at $11,495.
Bitcoin price jumped to $11,600 in the news wake of the update to the Fed’s policy, however, it was rejected immediately to lows of $11,200. An analyst isn’t surprised at this BTC move, describing it as the “fade the Fed” pattern, stating that Bitcoin has always reacted like this to Fed-related news.
Despite its near-term consequences on BTC price, there’s no gainsaying that this news will elucidate the importance of having exposure to hard assets like BTC.
Another Reason Why It Matters for Digital Assets Is Two-Fold: technology and anti-inflation potential depicted in an ability to tap into unbanked communities and spread the “credit and confidence.”
Tyler and Cameron Winklevoss, early Bitcoin investors and founders of Gemini, believe weakness in the U.S. financial system coupled with other factors means Bitcoin could one day reach $500,000.
A prominent trader maintained that BTC’s high time frame outlook remains bright pointing to the sustained defense of the lower-$11,000 regions as a bull-favoring sign. Vinny Lingham of the Civic cryptocurrency project and also a Bitcoin investor says that BTC will surge towards $15,000.
Lingham expects a consolidation first around $14,000 before it climbs higher. He stated that BTC may face a deeper drop before it goes back quickly to $14,000. Another analyst shares this school of thought believing that a breach past $12k which seems closer than ever will spur BTC to hit $15,000.
On-chain data are predicting a mixed outlook for BTC. Some are predicting bullish, while another set is flashing red. One set of on-chain data marking bullish for BTC is its recent Stablecoin Supply Ratio (SSR).
Image Courtesy of Glassnode
Image Credit: Glassnode, Shutterstock
