Bitcoin Price and Where the Buying Power Is
Price analysts are now saying that Bitcoin’s recent run will continue at least until the $10k zone. Allegedly, there is little resistance present, and the price should continue to go up past its recent high of $9000 to the much anticipated $10,000 mark.
The belief is that a high degree of buying power will be required to push it to this point, and that pressure will come during dips. Bulls are “in control” at this point, and just looking for good times to make leveraged purchases of BTC. The key support level stopping Bitcoin’s price from dropping into the $7k range is $8200, so investors should be wary of that area from now on.
Blockchain Classified as Emerging Technology
As the industry is in search of more buying power, it is interesting to watch U.S. lawmakers push to have the National Economic Council (NEC) host a forum on blockchain. Officially listing blockchain as an emerging technology and giving it a ton of additional exposure could be what it takes to push Bitcoin’s price back into the 5-figure zone.
A bipartisan letter was addressed to Larry Kudlow, an advisor to Trump, looking for more support of the technology. Seeing as blockchain has stayed in the mainstream for several years, this doesn’t seem like an unrealistic request.
One of the main issues holding back the blockchain industry has been a lack of clear guidelines and regulations. This makes one quote in the letter stand out:
“To continue its standing as a world leader in technological innovation, the United States should engage with policymakers, the private sector, and academia to promote the research and development of blockchain technology; explore its benefits for private and public use; collaborate on cross-sectoral policy, standard-setting, scalability, and implementation issues; and discuss potential regulatory approaches.”
Viewed as a potential benefit to all of society and source of economic growth (in the same way that artificial intelligence is) blockchain technology looks to be a new economic focus of the NEC for the coming years.
More Signs of the End of Crypto Winter
It is interesting to see these requests play out as we emerge from the crypto winter, but it reflects a relatively unknown reality: the blockchain industry has been quietly working away and developing for the past year. Now it is the time for them to flourish and gain more steam, especially as the buying interest increases.
One recent trading statistic that has been put forth is the number of wallets holding 1,000 to 10,000 BTC has greatly increased over the last 6 months. The proportion of total Bitcoin ownership increased from 20% of the circulating supply to 26% of the circulating supply. Wallets of this size are referred to as being “firm sized”, and the fact that they have accumulated so much Bitcoin says that it isn’t just the whales making accumulations.
In an industry where market manipulation is such a worry, it is necessary for the non-whales to show positive moves in order for the overall trend to seem more credible.