Bitcoin prices continue to fluctuate within the trading range of $27800 to $30000. Although the buyer currently seems to have lost momentum and bears feel under control, there are still many reasons to believe that Bitcoin prices may reach annual highs in the short and medium term
Bitcoin prices continue to fluctuate within the trading range of $27800 to $30000. Although the buyer currently seems to have lost momentum and bears feel under control, there are still many reasons to believe that Bitcoin prices may reach annual highs in the short and medium term.
The past few weeks have shown that BTC has responded strongly to the banking industry turmoil and has seen an increase. Once again, Bitcoin was born to free assets from the financial system. The ongoing US banking crisis will be one of the reasons driving the rise in Bitcoin prices.
US Treasury Secretary Yellen has warned that a debt default will occur as early as June 1st, which will "cause economic and financial disaster". The White House Council of Economic Advisers has warned that if not resolved within three months, it will trigger a Great Depression, with over 8 million people unemployed and the stock market plummeting by 45%.
As people become increasingly concerned that the US government may default on its debts, Geoff Kendrick, head of foreign exchange research at Standard Chartered Bank, firmly bets long, stating that if the US defaults, Bitcoin's good reputation and safe haven position during market declines mean that its price is expected to rise above $50000.
In addition to the risk of default on US bonds, soaring inflation has also had a profound impact on the global economy. Michael Saylor, CEO of MicroStrategy, stated that with severe inflation and recent banking crises in Europe and the United States, the combination of these factors will significantly increase the adoption rate of Bitcoin and gradually erode public trust in fiat currency.
Although the financial markets initially reacted bearishly to Wednesday's FOMC press conference, the market did not believe that the Federal Reserve would raise interest rates again in June. According to CME's FedWatch tool, the vast majority of 99.1% currently expect to suspend interest rate hikes in June. Analysts at JPMorgan Chase also believe that the Federal Reserve's interest rate hike cycle is coming to an end, and due to credit tightening and banking difficulties, it may shift as early as September, greatly benefiting BTC.
From the "London Upgrade" of Ethereum in 2021, to the "The Merge" of 2022, as well as the "Shanghai Upgrade" just completed this year and the next round of "Cancun Upgrade", the significant progress of Ethereum ecology and the booming ecosystem of borderless innovation have almost occupied the main media coverage.
In contrast, the dynamics of the Bitcoin ecosystem have rarely been widely discussed in the market, and even many industry users have felt that the development of Bitcoin may be in a state of stagnation. It was not until this year that games represented by Ordinals began a new wave of "BitcoinFi", which gradually began to change.
Of course, although most mainstream DeFi is still in the Ethereum ecosystem, the Bitcoin network is still not evolving. Especially the previous Tarpot upgrade to a new combination and possibility of Bitcoin portability, privacy, and even intelligent integration, as well as the recent exploration of adding more complex programming capabilities.
With the continuous transformation of bull and bear markets, the timeless "halving" narrative in the crypto world is gradually approaching - the current block height is less than a year away from the remaining halving time of Bitcoin, which may also be the vast majority of practitioners and investors entering the industry, witnessing the "grand event" of Bitcoin halving firsthand.
The founder of F2Pool, the world's largest Bitcoin mining pool, "Shenyu" Mao World Bank, released a heavyweight outlook. The early days of the Bitcoin bull market have arrived, and the absolute bottom has passed. The industry is in a state of searching for new narrative logic and development, and the encryption market is repeating the 2020 boom.
summary
In summary, 2023 looks likely to be a year of positive macro conditions for the booming development of Bitcoin prices. Various widely watched on chain indicators, macroeconomic situation, and analysis of the impact of long-term "halving" of Bitcoin on market cycles indicate that the cryptocurrency market has entered the early stages of a new bull market. As for whether Bitcoin can reach a new historical high, we will wait and see.
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