Bitcoin extends the bullish momentum, hovering between gains and losses as traders await for some more hints from the US Congressional leaders on their next stimulus package so let’s read more in today’s Bitcoin news.
The number one cryptocurrency increased by 0.07% to $22,843 which only suggests that it would consolidate sideways after hitting another record high on Thursday at $23,677 while other altcoins like cryptocurrencies like ETH and Ripple also wavered. Both the Democratic and Republican leaders were looking to finalize the long-delayed COVID stimulus bill as the US struggles with the high rates, crashing economy, and fresh lockdowns. The data released a few days ago shows that the number of people filing for unemployment benefits reached a three-month high.
#bitcoin > $20k by year end 88% probability! pic.twitter.com/XwENFohy2a
— skew (@skewdotcom) December 18, 2020
Experts and market strategists think that the deteriorating market outlook put quite a bit of pressure on US lawmakers to pass the new stimulus package at the earliest. The chances of more liquidity entering the economy pushed the US dollar index down to a two-year low. Bitcoin increased by 20% this week during the weak dollar sentiment as CNBC reported that the mainstream investors have already purchased the cryptocurrency to reduce the exposure to the dollar. They see BTC as an “inflation-protected wealth store.
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Bitcoin extends the bullish momentum but consolidated as the US dollar tried to pare the losses while the dollar recovered by 0.2% staying on track to log the extended losses during the anti-dollar sentiment that has something to do with the Federal Reserve announcement that will continue the easing programs. The analyst at MUFG said:
“The announcements this week certainly reinforce the prospects of loose monetary conditions, and favorable risk asset performance, which led by the Fed will keep the US dollar on a weakening path.”
With that being said, BTC will likely continue behaving like a safe-haven for the mainstream investors and corporations that are sitting atop the heavy cash reserves. Also, as reported, BTC is nearly at the point where the last cycle led to one of the first red monthly candle closes which happened in 2016 December. This has been an important month for the cryptocurrencies as it acted as an important pivot point for price action. Bitcoin’s bubble cycles are explained to be due to the asset’s unique block rewards mechanisms and its scarce supply. The idea here is unlike gold and other commodities, rather than to increase the production and the supply when the demand grows, Bitcoin cuts down the supply further.
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