Why is the Price of Bitcoin($31500) not Rising Despite Lots of Positive News?
CPI | ETFs | BRISC | DXY | Accumulation
The CPI data was announced yesterday; according to the statistics, this time expectation was 3.1%, but 3% has come, which is quite good. This data is positive for the stock market and the cryptocurrency market, but negative for the Dollar index.
Like me, you must be wondering why there hasn’t been any big movement in Bitcoin even though the DXY is falling rapidly, the CPI data has come positive, and a lot of news related to Bitcoin is coming out. So now let’s try to find the answers to all of these questions.
There are 2 small reasons responsible for this:
- Some experts still think that the FED might increase the interest rate by 25 BPS in the last week of this month.
- Whales are trading against the news. After seeing the news, normal traders would initiate long positions with huge leverage, and whales would trap and liquidate them.
But even whales cannot manipulate the market for a long period of time.
Positive news will fuel the rocket, but it will not take off until Bitcoin breaks its strong resistance of $31500.
ETFs
All of the major firms pursuing the Bitcoin Spot ETF in the United States have refiled. Since Coinbase will have custody of processing the companies’ bitcoins, all of them have applied for ETFs using Coinbase as a pillar of support.
In this case, the SEC is suing Coinbase because it is suspected of engaging in securities trading. Coinbase has filed a lawsuit, requesting that the SEC’s allegations be rejected.
It will be interesting to watch what happens next. SEC — ETF — Coinbase
Whales
Since June 15, whales have acquired 71000 BTC from the market. You must be wondering why the price of BTC hasn’t changed much even when so many Bitcoins are being acquired.
Well, whales deal in large amounts of OTC (over-the-counter). Let me explain with an example of how the OTC deal is done.
Example
You are a whale and you need to buy BTC worth one billion dollars. If you buy such a large amount from any exchange, you will absorb all of the exchange’s demand, causing the price of Bitcoin to skyrocket.
You acquire Bitcoin from someone who wants to sell Bitcoin and has no price movement. You will accept Bitcoin by paying the person who is in front of you. In this sort of trade, no data will be visible. Wallet-to-wallet BTC transfers are taking place here.
Whenever you get the news that bitcoins have been bought in bulk at a specific price and the price movement is not visible, it means that there is an OTC deal.
When Microstrategy announces that we have purchased 5000 bitcoins, the impact on the price of BTC is low because the transaction is done through OTC.
BRICS
The United States has the highest amount of gold in the world, with a value of $480 billion. After the US, Germany has $198 billion, Italy has $144 billion, France has $144 billion, Russia has $135 billion, China has $115 billion, Switzerland has $61 billion, Japan has $50 billion, and India has $46 billion worth of gold in reserve.
The total global gold reserve is $10 trillion. The global trade of each of these nations is several times higher than their gold reserves; how will the countries handle this scenario if each of them issues its own Gold-Backed CBDC or BRISC currency?
If BRISC is creating gold-backed currency, does it have enough gold to meet international trade requirements? According to me, the solution to this problem will be Bitcoin in the future, when Bitcoin will have the status of the gold standard.
It is feasible that the Central Bank will issue currency in the future by holding bitcoins in reserve. There would be no need for auditing because everything will be transparent.
GPUs are powering Bitcoin. Indirectly, GPUs are being used to run crypto coins. GPU technology has a bright future.
US Inflation
In the United States, inflation is decreasing. In the United States, inflation hit 9% in July 2022 before steadily declining to 3% now. By raising interest rates, the United States is controlling inflation.
BTC
There has been a huge accumulation of bitcoin in the area of $30000 to $30700. The echo of this accumulation is going to be heard loudly in all directions. Whales have accumulated so much that if Bitcoin breaches its strong resistance of $31500, a stormy boom is possible.
Wait for Bitcoin to break its $31500 level and this is also a friendly reminder for everyone to do their own research and analysis before making any kind of decision.
When the price of bitcoin reaches 31000, the long open interest increases very quickly, due to this, sellers reduce the price to trap long trades.
Tether has printed 1 billion USDT on the Tron chain, indicating that demand for the crypto market is increasing.
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Disclaimer
This is not Financial Advice. This article is meant only for educational purposes. I am just sharing my thoughts and analysis based on my many years of experience.