BTC: 100k will come – but when?
Bitcoin has been showing a high level of volatility for days as the conflict between Russkand and Ukraine puts pressure on cryptocurrencies. After a short rise, the BTC price dropped again on March 11. Nevertheless, a renowned analyst remains confident against all odds and still sees Bitcoin on its way towards $100,000. In addition, positive signals are also coming from the USA.
USA plans new crypto law
The White House published an executive order on March 9, which provides for a new way of dealing with Bitcoin and cryptocurrencies. From the looks of it, the Biden administration is apparently planning to set the course for a crypto-friendly America. “The rise of digital assets presents an opportunity to strengthen U.S. leadership in the global financial system and at the technological frontier,” the executive order states, for example. It said the United States must maintain its “technological leadership in this rapidly growing area” and “support innovation.” The goal, it says, is to play “a leading role in international engagement and global governance of digital assets.” As a basis for a future legislative framework, different government agencies are to conduct studies on cryptocurrencies within nine months. These will cover, for example, consumer and investor protection, financial crime and evaluation of the risks posed by crypto to the global financial market. Also to be urgently examined now is the issuance of a digital dollar, a so-called Central Bank Digital Currency (CBDC).
It is the starting signal of a new era for cryptocurrencies – and has been long awaited. After months of discussions about the opportunities and threats of the blockchain industry for the United States, U.S. President Joe Biden this Wednesday signed an executive order regulating the crypto space. “The United States must maintain its technological leadership in this rapidly growing field, encouraging innovation while mitigating risks to consumers, businesses, the broader financial system, and the climate,” the order states. A “whole-of-government approach is being taken,” a White House official said at the press briefing.
Some experts warned in advance of the order of the potential dangers of U.S. government intervention, including Richard Gardner, CEO of Modulus, a leading U.S. technology company. The Biden administration, he said, is usurping the power to “shut down or alternatively tax alternative payment mechanisms.” Gardner also fears the Federal Reserve System (FED) is seeking “complete control” over global monetary policy and privacy with the introduction of a digital dollar.
Volatility is back
Only four altcoins in the top 100 are rising in the current market environment: Waves Coin (WAVES) up 31%, THORChain (RUNE) up +12%, Near Protocol up +3%, and Celsius Network (CEL, +2.4%). Overall, the global crypto market cap has lost 4.66% in value over the last 24 hours, now sitting at $1.74 trillion. In short, volatility is back. However, the prices do not fluctuate randomly, but quite understandable, because: BTC has been moving within a fixed range between $34,000 and $46,000 for months. A clear upward or downward movement is therefore not to be expected until Bitcoin manages to break free from this range.
However, it is “nice to see the bulls defending some ranges,” according to Mike McGlone, senior commodity strategist at Bloomberg. He believes, “Once Bitcoin manages to rise above the critical level, the path is clear back toward $100,000 and above. McGlone is certain: geopolitical tensions, rising oil prices and U.S. monetary policy are creating the perfect conditions for a recession. In his view, Bitcoin is in transition from a risk-on to a risk-off asset. To be sure, BTC could very well still crash to $30,000. But, “I still think, based on supply and demand and acceptance trends, it’s only a matter of time before it reaches $100,000. This could be part of that phase where the base is formed.” So we can expect either a crash to $30k – or the rise to $100k – Bitcoin is making it exciting again….