Bitcoin may look to bounce this week.
In the medium term, bitcoin may continue to consolidate and even drift slightly lower than current prices, which are about $9,500 right now.
However, there is a possible catalyst this week that may cause a bounce in the very near term.
What catalyst am I talking about?
The FED is expected to announce a rate cut this week.
It is not for sure that they will, but many are speculating that there is a very good chance that they will.
Environment matters!
Recently, part of the bullish momentum in bitcoin has been attributed to an "easy-money" environment.
IE, one where interest rates are being lowered instead of raised and quantitative easing is said to be on the back burner as a safety net should the economy sputter.
That is exactly the kind of environment that one would expect bitcoin to catch a bid in, just like it has.
A weaker dollar = upside in bitcoin.
The environment in 2018 was exactly the opposite with multiple rate hikes, a stronger dollar, and QE was a distant memory.
All that has changed now, and that is great news for bitcoin!
With roughly half of the bitcoin trading now happening in the US, what happens here in the US matters a great deal to prices.
What does that mean for prices?
I would not be surprised to see a rate cut later this week and bitcoin bounce back up near $11k at some point this coming week, possibly even $12k.
What it does from there is anyone's guess (actually I think we trend lower afterwards), but in the short term, we are set up for a bounce.
Stay informed my friends.
Image Source:
https://www.newsbtc.com/2019/07/27/fed-interest-rate-cut-is-rocket-fuel-for-bitcoin/
-Doc
Interesting. I often don't think about fed policy and bitcoin but I suppose there is some correlation. Will keep an eye on this. I do agree that prices will likely trend lower after a pop if there is one. Hoping to buy more at 8,500 then 7,500 if if gets that low. Otherwise hodl what I have.
Yea, there does seem to be some correlation with easy money policies and bitcoin prices, at least since 2016 to now anyways.
Bitcoin is just about the furthest right on the risky-asset spectrum. Meaning that when money is 'easy' it does well.
In times of rising interest rates people tend to shy away from risky assets.
Therefore, easy money policies which are good for stock and other risky assets are good for bitcoin as well.
Actually, I see it somewhat differently but with the same result. I think the latest reading of the Q2 GDP and employment figures will make the Fed hold off reducing rates which will cause the financial market to get caught off guard and bring some pain to them except for bitcoin which will go the other way as it has performed well when this happens.
Posted using Partiko iOS
Haha, well we shall see. I guess that is why they make a market, right?
Congratulations @jrcornel! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :
You can view your badges on your Steem Board and compare to others on the Steem Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPTo support your work, I also upvoted your post!
Thanks.
Very interesting!
--PayDepot
Thanks.
i still dont believe it will drop below 9k
and i told edicted the same thing
i dont know what you think but edicted thinks its going to 7.5k i cant see that happening no matter what i will be surprised if it drops below 9k and if it does it wont stay there for long
hope all is well jr and have a great day man
I think we test $8,500 at a minimum, possibly $8k or $7,500 as well. So, I am in the same camp with edicted on this one.
the only way i can agree with that is if it happens before the bugs and kinks come out of the baakt platform since they are putting in one percent when all the bugs
and kinks are out so one percent of a 170 trillion is five times what the market cap is and thats just the beginning so if it goes to 7500 hell i havent bought a BTC since it was 250 dollars and i will buy one or two if it drops that low but i highly doubt it
there wont be anything lower than 9k if it doesnt happen within the next two weeks
it will get to 20k before it goes to 7500 if it does not happen within two weeks
and i will put my money where my mouth is and even maybe send edicted a message and will make a wager with both of you if you guys are interested lol
cheers and have a great day bud
oh yeah and they also say by spring they will consider puttin in ten pecent of the 170 trillion so i dont see how in hell it will go back down to 7500 if it doesnt happen within the next two weeks
i am too ignorant to know where the price will go but what i do know teeka marco and berwick are hardly ever wrong when they all agreee on a topic
bless ya buddy and if it hits 7500 i will be buyin one or two at minimum and i havent bought BTC in years and years and years
not safe no fungibility and monero blows BTC away but no one is aware of whats going on yet
another year or so things will open up for the blockcham=ins that are quicker safer and much more fungible
cheers i ranted on here for a bit sorry a little excited hehe
Thanks.