Cryptocurrency
Bitcoin price prediction – “Will Bitcoin go back to the low”? Why the asset risks falling in price again
Experts explain what’s causing the rise in Bitcoin prices today and what events may affect the market soon. On July 29, Bitcoin reached a 1.5-month high of $24.4 thousand; its price went up by 5% per day, and by more than 26% over the month. Ethereum price rose to $1.77 thousand, showing a monthly increase of 70%. Current Bitcoin price is around $23,650.
Bitcoin price prediction
The largest altcoins by capitalization are also rising in price, and the total estimate of the cryptocurrency market exceeded $1.41 trillion, while a month ago it was $946 billion.
The rise in cryptocurrency prices accelerated on the evening of July 27, when the Federal Reserve announced a 75 basis point rate hike. Also, the appearance of precise dates for Ethereum’s transition to the Proof-of-Stake protocol had a positive impact on some token prices.
What factors are affecting the crypto-market at the moment, and what may be the dynamics of rates soon?
Downward pressure
The main reason for the growth of the CFA market in recent days is fundamental pressure on the market by the U.S. Federal Reserve. Tightening of the monetary policy occurs softly, without dramatic raises of rates over the forecasts.
Decreased pressure of authorities together with low rate of taper (gradual reduction of economic stimulation by central banks) allows cryptocurrency investors to increase volume of purchases without fear of price fall because of actions of regulators.
In the case of a positive scenario, Bitcoin may test the $30,000 level. The current volume of purchases and activity in the networks will not allow the price to grow significantly. As we remember, Bitcoin prices all-time high in 2021. Before we see the market rise to historic highs, the price could still fall this year. Therefore, I recommend buying cryptocurrency at current prices with an eye on the fact that there is a possibility of a price correction after the rise.
Intermediate Bottom
The corrective channel that started with the lowest prices in June emerged as an intermediate stop before further declines. This was confirmed by the price exiting through the upper boundary and returning back. Quotes were already moving to the lower boundary, but the situation became more complicated. Now there was another exit over the upper boundary, but it happened in the absence of the necessary conditions for growth.
The ascending wedge on the Bitcoin price chart, which indicates a limited upside potential. The price is on top, which does not allow an upward movement to develop. Globally, the situation has not changed, but further downward hikes will be possible already in the new formation.
The current price impulse has occurred without any serious reason, and soon nothing special is expected. Negative influence can be made by such factors as investigations concerning Coinbase or legislative decisions on stablecoins in the USA.
But the impact of external factors should not be overestimated, because the crypto market only matters supply and demand, not reporting, like the stock market, the expert said. He suggested that the increase in rates could simply contribute to large purchases in a situation of reduced liquidity.
Bitcoin prices by the end of 2022: Downside risks exist
In the coming weeks, the main focus of market players is on Ethereum’s transition to the PoS version, which will make adjustments to the activities of miners and investors around the world. The overall outlook for Ethereum is assessed positively. But the current growth in the value of ETH will probably not be unstoppable: there are risks of falling prices amid the problems of ETH 2.0.
Market participants are upbeat now, despite the recession risks in the US. The U.S. inflation data, which will be released in mid-August, will be slightly better than forecasts, and this will entail a positive reaction of the economy to the Fed’s actions. These events will cause stock markets to rise, which will also support crypto-asset prices.
If inflation data turns out to be bad, it will cause a flight out of risky assets, a drop in stock markets and an expectation of tougher Fed action. This is what could momentarily put pressure on cryptocurrency, causing prices to return to their sideways rally without a surge.
Now the main task of sellers is to prevent the enthusiasts, who bought Bitcoin at the exit of the channel for the first time (in mid-July), from making money. This means a possible movement downwards and fixing of stop-orders at $21K. After that, the support level will be broken and the rate will go down: at first, towards $19K and then to the local minimum of $17.5K. Well, the price growth up to $100K is rather Bitcoin price prediction 2025.
Hong Kong has allocated another $50 million to accelerate the development of the crypto industry after local authorities allocated HK$50 million (about $6.37 million) in late February to develop the Web3 direction. This is stated in a press release on the website of the government.
Legalization of cryptocurrencies in Hong Kong
According to the head of the Financial Services and Treasury Bureau of Hong Kong (FSTB) Christopher Hui, the pool of funds will be allocated, in particular, to organize major international Web3-events. Hui also said that the government will organize educational programs for young people, for which preparations have already begun.
In addition, the 2023 budget provides for the creation of a working group to focus on developing virtual assets and study the situation in the crypto market, development opportunities and the need for changes in regulation.
“Hong Kong is well positioned to become a leading hub for Web3 in Asia and beyond, and we attach great importance to virtual assets (VA) and Web3. The government is committed at a high level to developing this sector and providing a comprehensive support system for enterprises,” Hui said.
He added that the Hong Kong Monetary Authority (HKMA) is now working on regulating stablecoins to introduce them into the economy next year. The country also plans to improve securities regulations so that retail investors can access ETFs based on cryptocurrency futures.
Despite several personal initiatives, Hong Kong authorities are also working closely with mainland China, testing international payments in the digital currency and working with the Central Bank. In all, as of the end of February, more than 80 Chinese companies had expressed interest in operating in Hong Kong.
Bloomberg wrote about China’s support back in late February. The agency pointed out that after Hong Kong set out to develop the crypto industry last October, Chinese officials have become more frequent visitors to Hong Kong. According to sources, this interest is because Beijing wants to use the city as a testing ground for digital assets amid tight control of crypto activity on the mainland.
We previously reported that the collapse of the Silicon Valley Bank is spurring demand for crypto apps.
Stablecoin issuer USDT is rapidly printing “digital dollars” in the TRON (TRC-20) ecosystem. This time, Tether printed another billion dollars in USDT, according to transaction details. The total number of USDT in circulation in the TRON ecosystem is over 42.1 billion USDT. By comparison, the Ethereum ecosystem issued significantly less – 34.2 billion USDT.
As TRONScan data shows, this is the second billion-dollar tranche issued by Tether for TRON. The last time the USDT-issuing company issued a similar amount of Stablecoin was on March 14. Since the beginning of 2023, this is the fourth transaction to issue such a large amount of USDT. As of 2023, the largest issuance occurred in February. At that time, Tether issued two billion dollars in USDT at once.
Amid the news, bitcoin barely reacted to the USDT pump. According to TradingView, the bitcoin (BTC) exchange rate in the BTC/USDT trading pair is $27,949, up just 1.4% overnight. Bitcoin has a market capitalization of $540.4 billion.
In early March, The Wall Street Journal revealed that Tether had opened bank accounts using fake documents and shell companies. It turned out that one of Tether’s Turkish accounts had been opened in the name of Denix Royal Dis Ticaret Limited Sirketi, which had previously been caught laundering money for a terrorist group.
Tether chief technology officer Paolo Ardoino ridiculed the publication on Twitter and said the WSJ’s information was untrue. Tether said it adheres to legal requirements to combat money laundering and terrorist financing, and uses KYC mechanisms of the highest level. Renowned cryptocurrency critic Molly White, for her part, said that The Wall Street Journal journalists couldn’t “just make this stuff up.”
We previously reported that major cryptocurrency exchanges have moved offshore.
According to a report by platform CoinGecko, 21 of the 30 largest crypto exchanges (70%) are based in offshore financial centers – territories that want to attract companies from abroad through loyal laws and schemes with low or no taxation.
Analysts of the service note that offshore zones, as a rule, offer non-residents more financial services and on more loyal terms than “in the home country”.
Where are crypto exchanges registered? They choose islands
Seychelles, the Cayman Islands and the British Virgin Islands were among the most popular offshore locations for cryptocurrencies. These territories are also considered tax havens for many corporations.
Also, one in five Crypto exchanges in offshore locations (20%) are registered in the Seychelles. This jurisdiction has become home to many centralized exchanges. Among them, there are well-known major platforms such as OKX, KuCoin, and MEXC Global. Many companies are “moving” to the Seychelles because the Seychelles Financial Services Authority (FSA Seychelles) refuses to license and oversee activities or companies related to cryptocurrencies.
In total, according to CoinGecko, the top 30 cryptocurrency exchanges are listed in 15 different countries: 11 of the 30 platforms (37%) are in North America – mostly in the Cayman Islands, British Virgin Islands and the United States. The number of companies located in Europe, Asia and Africa is evenly split: 20% each (or 6 countries).
The number of companies offshore may grow
Because of stricter U.S. regulators’ policies toward cryptocurrency companies, many firms are having to move to more cryptocurrency-friendly countries.
For example, the Hong Kong government, to turn the state into a new crypto hub, has allowed retail investors to trade digital tokens such as bitcoin (BTC) and Ethereum (ETH). The Hong Kong authorities themselves admit that they want to create a “favorable environment” for developing the local crypto industry.
Also, Ras Al Khaimah, one of seven regions in the United Arab Emirates (UAE), is preparing to open a free zone for cryptocurrency companies. Entrepreneurs in these areas own 100% of their businesses and have their own tax schemes and regulatory frameworks.
We previously reported on the Top 5 low-cost AI tokens with huge growth potential.
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