not always obvious what causes prices to temporarily tumble or rise
Early last week bitcoin rose past $70,000 per coin... ($74,000, I think was the high).
It has since been dropping at a steady rate. This morning it is sitting in around $52,000 to $54,000 per coin.
The reasons why this drop can be difficult to analyze, but there seems to be a consensus on the reason and that has to do with regulations.
November 17th, 2021
Coinbase Bytes marketing
C/P
Crypto markets tend to be volatile — and it’s not always obvious what causes prices to temporarily tumble (or rise). Market watchers who spoke to The Wall Street Journal proposed a variety of theories for yesterday’s dip: some investors may have taken advantage of high prices to secure profits, and some may be seeking more certainty around crypto regulation.
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theblockcrypto.com
Aislinn Keely
November 15, 2021
C/P
Senators to introduce crypto amendment to Biden's infrastructure bill.
Senate Finance Committee Chairman Ron Wyden and Senator Cynthia Lummis have plans to introduce a new bill today (Nov 15) that would reverse some of the cryptocurrency provisions in the recently-passed bipartisan infrastructure package.
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Code:
https://www.theblockcrypto.com/linked/124388/senators-wyden-and-lummis-to-introduce-crypto-amendment-to-bidens-infrastructure-bill?utm_source=Iterable&utm_medium=email&utm_campaign=campaign_3208754
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theblockcrypto.com
Aislinn Keely
November 15, 2021
C/P
October saw a record 6.2% year-over-year jump in the consumer price index. Trillions of new dollars in federal aid during the pandemic helped Americans buy more goods than ever before, as global supply chains have suffered historic levels of stress and congestion. So what does this have to do with Bitcoin? Bitcoin was designed to resist inflation via a fixed supply — only 21 million BTC will ever exist. However, fears that the Federal Reserve might raise interest rates to stem inflation could have halted BTC’s recent momentum as an “inflation hedge.”
Taproot, Bitcoin’s biggest network upgrade since 2017, went live this weekend, adding support for more efficient and private transactions. The update can also potentially power new Bitcoin-based crypto apps and smart contracts, while providing smoother integration with the Lightning Network, which facilitates cheap and near-instant payments. This week the value of BTC locked in Lightning reached a record high above $200 million.
As inflation fears continue to rise, some analysts believe Bitcoin is supplanting gold as investors’ preferred hedge asset.
Over the last year, Bitcoin's price has risen more than 250% while gold has actually lost more than 1%
But it’s important to remember that inflation doesn’t automatically signal “endless gains” to every BTC trader — and the prospect of higher interest rates has the potential to spook markets of all kinds, including crypto.
How will it all shake out?
Only time will tell.
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