After two consecutive days of falling, the price of Bitcoin is now fluctuating in the range of $ 32,500. Bitcoin, on the other hand, has been experiencing cross fluctuations over the past eight weeks.
to the the report Experts believe that bitcoin prices are going up and down in line with traditional markets. Federal Reserve Chairman Jerome Powell, meanwhile, said in a statement that he had not yet seen “significant progress” in the economic recovery. Most likely, his remarks mean that the US Federal Reserve is not thinking of stopping protectionist policies any time soon.
Powell made the remarks as the State Department said in a report that inflation was rising at a rate unprecedented for the past 13 years. It should not be forgotten that many investors, due to the anti-inflationary nature and limited supply of bitcoin, consider this digital currency as a safe haven against inflation and devaluation of common currencies.
“Edward Oya, Oanda’s chief market strategist, said in a statement:
The wide rally on Wall Street stocks was something that made the digital currencies positive. The Federal Reserve does not appear to be making much of a change in its policies and is willing to keep up the pressure on rising prices for a few more months and then think about changing inflation.
The price of Bitcoin has fluctuated around 1% in the last 24 hours. Ethereum is currently up 1.6 percent to close at $ 2,000.
Other markets have been calm in the past 24 hours. The S & P500 index grew 0.12%. Gold rose 1 percent to $ 1,827. The interest rate on 10-year Treasury bonds has also increased by 1.34%.
As mentioned earlier, the price of Bitcoin has fluctuated between $ 30,000 and $ 40,000 over the past eight weeks. Meanwhile, analysts are relying on Blockchain data to predict the future trend of the digital currency.
David Grider, head of digital assets at Fundstrat, wrote in his weekly report on Wednesday that he monitors the SOPR index. This index is obtained by dividing the average selling price of Bitcoin and the average buying price of this digital currency. Grader wrote about this:
When the SOPR is above 1, it means that the assets were in a profit position at the time of the transaction. When this index is below 1, it means that the condition of the assets was at a loss at the time of the transaction.
This index has been below 1 since May. Grader refers to this as a “resumption of the profit-taking phase” and describes it as a sign of market “health”. This phase is similar to May last year. The corona virus had just started at that time. A few months later, the price of Bitcoin began to rise, and the digital currency grew fivefold. Grader writes in part of his report:
In a bullish market, as we expect in the current market, the SOPR below 1 indicates a local price floor and traders are reluctant to sell their currencies at a loss.
In a speech to the House Financial Services Committee, Powell focused on the outlook for the US economy, inflation, and the direction of the country’s monetary policy. He also answered questions about digital currencies.
One of these questions was posed by Patrick McHenry of North Carolina. McHenry asked Powell about the federal report on national digital currencies and digital currencies.
In response to this question, Powell stated that this report will be published in September. We will see the release of this report earlier this month.
Moya says about this:
US legislation, along with environmental, governance and social concerns, are the biggest risks to digital currencies; Therefore, the Federal Reserve report on national digital currencies can be described as good news for Bitcoin.
In part of his response, Powell said that if stable coins were to play a major role in US payment networks, their legislation must be rigorous. Powell added:
Certainly stable coins have advantages in terms of fast payment systems and can be related to national digital currencies; But for now, there are some risks involved. I think Stable Coins are very similar to bank deposits.
In response to the Democratic representative in Massachusetts, Powell said that the position of the dollar as the world’s first reserve currency is not under threat, and this position will not be shaken even with the development of national digital currencies. “The role of neutralizing national digital currencies versus decentralized digital currencies,” he said.
If you have digital dollars, you no longer need to stabilize coins and digital currencies. I think this is one of the strongest reasons for the digital dollar to dominate.
Shift Shutdown Closure
ShapeShift, one of the leading digital currency trading platforms, has announced that it is shutting down. The platform is now operated by a DAO controlled by FOX token holders.
With the launch of the platform closure, something like $ 98 million in digital currency will be invested in various Defy AirDrop platforms.
Following the announcement, the price of the FOX token jumped. At present, each unit of this digital currency is $ 0.5. Prior to the announcement, each FOX unit was trading in the $ 0.28 range.
During yesterday, Stellar, Bitcoin Cash and Avi became the market winners with 5.31, 1.79 and 1.37 percent growth, respectively.
Thezos with 5.2, Algrand with 3.8 and Polkadot with 3.78% loss were also among the digital currencies that did not leave a good day behind.