The fact that one of the largest exchanges in the world was just proven to be a Ponzi scheme and that Bitcoin didn’t fall any further is a very strong sign.
- The BTC/USD initially tried to rally during the trading session on Thursday but seems to be sticking to the 23,000-level light blue.
- This is an area that has been in massive consolidation, and if you look to the left on the chart, you can see that in August of last year, we had seen a lot of selling pressure from this region.
- Because of this, I think it does make sense that we sit on the sidelines and try to figure out where we’re going next.
Ironically, even though Bitcoin is supposed to be “outside of the banking system”, the reality is that the Federal Reserve meeting next week will be a major event for the Bitcoin market because it relies on cheap and loose monetary policy to become viable. Most of what we have seen recently has been twofold: the first thing of course is that traders are betting that the Federal Reserve is going to slow down its monetary policy, perhaps even pivoting later this year. The 2nd reason is that the recent scandals and criminal behavior in the crypto world seemingly have not fazed holders of Bitcoin.
Bitcoin to be Resilient in the Long Term
The fact that one of the largest exchanges in the world was just proven to be a Ponzi scheme and that Bitcoin didn’t fall any further is a very strong sign. Whether or not that’s a reason for going higher for longer is a…
