Bitcoin price rose rapidly from $ 57,000 to $ 59,000 in 15 minutes and then corrected downward. During the past day, altcoins did not have much volatility either, important altcoins still followed the BTC trend.
The big news last day that hit the market was that President Biden announced his intention to appoint Mr. Powell for a second term as chairman of the Fed. Mr. Powell is a practitioner of modern monetary theory. And his way of stimulating the economy by loosening the currency, lowering interest rates, pushes money into the market.
This path by Mr. Powell will add to inflation in the long run. Inflation hit 6% recently in the US, but Chairman Powell still believes prices are rising due to the difficulty of moving goods during the epidemic. But the reality shows that inflation has been rising for a long time.
With Powell reappointed for a second term as Fed chairman, the USD has appreciated against other currencies, as shown by the DXY (orange line), an indicator that takes into account the weight of the USD against six other major coins (Source: CryptoQuant ). Investment markets such as stocks or even BTC also grew rapidly.
However, Chairman Powell announced that the Fed will gradually reduce the urge to push money into the market by reducing bond purchases. Concerns about the Fed’s rate hike have hit both the market and investors hard. Perhaps this has caused the price of BTC as well as US stocks to fall afterwards.
The on-chain market hadn’t moved much over the weekend. The amount of BTC that is loaded on the exchange is higher than the amount deposited, but not significant. The big trend of BTC on the exchange continues to decline.
The rate of profitable BTC has been adjusted to 84%, other indices have also been adjusted. Above delivery rate by 0.06. The ratio between the number of long and short orders is relatively balanced. The total amount of future orders is still high.
Last week, Coinshare-listed mutual funds continued to flow into the crypto market. Despite the market correction, digital asset investment products saw total inflows totaling $ 154 million, with Bitcoin price falling 12% for the week. It doesn’t seem to detract from positive investor sentiment.
Most of the money is still invested in BTC. Then there are altcoins like ETH, SOL, DOT.
There is a major Thanksgiving holiday in the United States this week. As in 2017, the price of BTC rose sharply and quickly to the USD 20,000 level after this holiday. Many expect BTC to grow similarly this year.
Whether BTC is growing like it did in 2017 or will extend the growth cycle longer, Thuan still believes in the future of BTC. In 2017 when Thuan first bought BTC for $ 1000, ETH for $ 30 … a lot of people thought it was too late to buy and the price was too high. But 4 years later we can see in retrospect that this time was still very early compared to the development and growth of the market.
El Salvador plans “Bitcoin City”
First country to accept Bitcoin as legal currency El Salvador continues to advocate BTC. President Nayib Bukele has announced that El Salvador plans to build an entire city based on the largest cryptocurrency Bitcoin.
“Bitcoin City” is a city that is being built near the Conchagua Volcano to harness the country’s geothermal energy and operate both the city and cryptocurrency mining. At the same time, the revenues are funded from BTC so that Bitcoin City residents don’t have to pay any income, assets, capital gains, or even wage taxes. The city is being built with the attractiveness of foreign investment in mind.
To this end, El Salvador will issue bonds valued at $ 1 billion. These bonds are guaranteed by BTC and repaid within 5 years. Half of the total proceeds from the bond will be used to buy BTC, the other half to build “Bitcoin City”.
President Nayib Bukele has placed great faith in BTC throughout his political career. The plans he made about BTC were implemented, which has created great trust among people. His upcoming plans with BTC and the country of El Salvador are also expected.