Bitcoin’s collapse from its 2017 high is still continuing. There have been people who said that Bitcoin had bottomed and others who concluded that Bitcoin was yet to bottom.
It is impossible to predict the bottom of Bitcoin, however, it can be seen that Bitcoin has had some improvements in the macro scale as compared to its situation in 2018.
Brendan Bernstein, a Twitter user, pointed out a couple of these factors that were helping Bitcoin, directly or indirectly.
Theres a perfect storm for BTC right now
– Democratic socialism
– MMT (Modern monopoly money theory)
– QE infinity
– 10k boomers retiring daily (entitlements skyrocketing)
– 2020 election
– US interest expense > tax receipts by 2022
– BTC halving in 2020
Never been more bullish
— Brendan Bernstein (@BMBernstein) March 29, 2019
Fundstrat’s Thomas Lee aka Tom Lee, a Bitcoin bull and an enthusiast, commented on the tweet. He agreed with Bernstein and added that there were definitely a number of macro factors acting as tailwinds for Bitcoin. He also mentioned that a couple of these tailwinds were acting as headwinds for Bitcoin in 2018.
In addition, Lee posted an image which detailed a list of factors which were a hindrance to Bitcoin’s growth, but have now transformed into a helping factor for Bitcoin.
Some of these factors included the US Dollar, EM, and Bitcoin Technicals, among others. The US Dollar, according to Lee, will weaken over the course of 2019 due to various reasons like QE by the Fed, and debt reaching an all-time high. Emerging Market [EM] was a headwind in 2018 and is now starting to act as a tailwind for Bitcoin as EMs are outperforming equities.
The technicals for Bitcoin, particularly the 200-day moving average, is currently acting as a support for Bitcoin’s prices. According to Lee, the price of Bitcoin will support the 200-day moving average and push for a bull run.
Other factors included the overall development in the crypto and the blockchain community, like the adoption of the Lightning Network, which would help Bitcoin scale successfully. Clarity regarding regulatory framework around cryptocurrencies and the entry of institutional investors into crypto could also trigger the bull run.
A Twitter user, @bitcoinpassada, commented:
“It’s honestly not even a question any more. 100k is gonna look cheap for a lot of people within a few more years.”
@tradeslower, another Twitter user, commented:
“Not to mention macro ie recession risk into 2021. QE has created alpha addiction/expectation like no other per equities. When that music stops where does liquidity turn to? Pension crisis? Bitcoin allocations…?”
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HitBTC responds to allegations of insolvency, refutes claims made by Redditors
HitBTC, a Hong Kong-based exchange has been the center of accusations among users on Reddit, Twitter, and other forums. HitBTC users started complaining about issues regarding withdrawal and extensive procedures after one particular user @ProofofReserach put out a thread alleging insolvency of HitBTC.
To put an end to all the accusations, HitBTC has broken its silence with a blog post explaining their side of the story. According to HitBTC, their systems performed well during the winter of 2017-18, however, HitBTC mentioned that due to overwhelming demand for the services, they experienced bottlenecks at an operational level.
Referring to the BitcoinExchangeGuide article, HitBTC responded:
“A widely quoted article, in its entirety, is based on only 2 AML cases. One of them was initiated as part of the investigation into the December, 2018 BTCP security breach, at the request of the coin’s core team. Unfortunately, there is no clear indication of the nature of the second case that can be discerned from the article. The author of the article failed to track the deposit/withdrawal dynamics that did not uncover any irregularities. A simple block explorer or our public System Monitor would suffice for these purposes”
Additionally, referring to the altcoins being added and removed from the platform, the exchange said that they were honored to work with a diverse range of projects, however, since the crypto sphere was still nascent, there were lapses in their judgment in assessing the integration partners. With the above-mentioned prominent cases, HitBTC also addressed other topics.
@ProofofResearch replied to HitBTC’s blog:
“Is there a reason why you’re unable to tell people us where your Bitcoin storage is at? If what I published is as untrue as you claim it is, then providing a wallet address where your Bitcoin funds are stored will go a long way in *proving that*.”
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