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These 4 Factors Show Why It’s Hard to Be Bearish on Bitcoin Right Now

August 16, 2020 , ,
#OhNoCrypto
  • There remain some Bitcoin bears despite the ongoing push higher.
  • One trader said that due to BTC’s failed attempts to break past $12,000, the cryptocurrency could move towards the $8,000s or $9,000s.
  • One fund manager, Charles Edward, in the space says that it’s hard to be bearish on Bitcoin right now, though.
  • He cites a confluence of fundamental trends, four of which will be outlined in this article.

#1: Bitcoin Is Being Adopted by Dave Portnoy

This week, Dave Portnoy, the founder of Barstool Sports and a celebrity day trader, bought Bitcoin with the help of the Winklevoss Twins. Analysts see this move as bullish for the cryptocurrency as his millions of followers will now be exposed to BTC on a regular basis.

Case in point: his Twitter video with the Winklevoss Twins has already been viewed over 700,000 times. Separate Portnoy interactions about Bitcoin have been liked and replied to tens of thousands of times as well.

#2: Federal Reserve is Working on a Digital Dollar

This week, it was revealed that the Federal Reserve is looking into a digital/crypto dollar in collaboration with MIT.

“With these important issues in mind, the Federal Reserve is active in conducting research and experimentation related to distributed ledger technologies and the potential use cases for digital currencies. Given the dollar’s important role, it is essential that the Federal Reserve remain on the frontier of research and policy development regarding CBDCs.”

Although it isn’t clear if this will materialize into an actual crypto asset, analysts say the digitization of finance will boost the value of Bitcoin.

As Arthur Hayes of BitMEX has explained, the abolishment of cash will lead to Bitcoin adoption due to the “moral and even psychological” need to keep information to oneself.

#3: Tether’s Market Cap Is Increasing at a Rapid Clip

According to Charles Edwards, the market capitalization of Tether has increased 26% recently past $10 billion.

To analysts such as him, this indicates that there is an influx of interest in capital into the Bitcoin and Ethereum markets.

Edwards previously found that Tether’s market capitalization was strongly correlated to the price action of BTC throughout 2018 and 2019, with the correlation somewhat tapering off this year.

#4: A Large Sum of the Bitcoin Supply Hasn’t Moved in a While

Blockchain data indicates that a large portion of all Bitcoin in circulation has not moved in over a year. Glassnode, for instance, indicates that around 67% of all BTC has not moved from a wallet in 12 months or more.

The last time this much of the BTC supply was inactive, the rally from the hundreds to $20,000 began.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
These 5 Factors Show Why It's Hard to Be Bearish on Bitcoin Right Now


OhNoCryptocurrency via https://www.ohnocrypto.com/ @Nick Chong, @Khareem Sudlow