Bull Run on Sunday
A fast-paced week is drawing to a close and the bulls are marching straight into the five-digit USD range. After a successful halving, the Bitcoin shines with its low inflation rate for a feature that 99% of all assets cannot offer. Even a decline in the hash rate is not particularly significant. However, the resistance at 9800 USD forms a stubborn barrier. Let’s take a look at the current situation.
Bitcoin price in detail
At the time of writing, the BTC is quoted at USD 9756 and has a 24-hour volume of just under USD 40 billion. From a bearish perspective, the resistance at 9800 represents the last limit before the important USD 10000 mark. On the downside, the trend line at 9600 USD hedges the gains of the past hours. A move into the five-digit range could primarily have a large psychological effect. 6 days after the halving, the price has already risen over 1000 USD. The high volatility could be a real blessing in this situation.
Isolation from the stock markets could attract mainstream
After the halving, we could observe how the No.1 crypto currency set itself apart from the weakening stock indices. The consequences of the Corona crisis continue to preoccupy the traditional markets and the economic damage is not foreseeable. Gold and Bitcoin have been performing in a league of their own for weeks now and insecure investors could be betting on the two assets for a number of reasons. Both are limited in their deposits, gold physical and Bitcoin digital. However, as a crisis-stable store of value, the “digital gold” has yet to grow and confirm its isolation from the traditional markets in the long term. With a market capitalisation of around USD 265 billion, it continues to be a marginal market in international comparison.
Hash rate losses are not significant
That the hash rate would fall after halving should not have come as a surprise to most investors. However, the community argued for a long time in advance about the possible consequences. To date, about one third of the miners have withdrawn their computing power from the BTC network. For the first Bitcoin Cash Halving, this figure was around 66%. The risks of a dreaded 51% attack have therefore increased, but remain unrealistic. The large mining pools divide the hash rate relatively evenly and the network appears stable.
Bitcoin in its own sphere
Bitcoin continues to expand its lead in alternative assets. At the moment the BTC Dominance Index is at 67.4%. Ethereum and Co. have been able to participate in the strong performance of the first mover for weeks, but this state of affairs is a game with fire. The calls for an Altcoin Season are increasingly fading away and the stop of the Telegram token should not ease the situation.