Bitcoin Seasaws Early in Week, Finishes Higher

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Summary

  • Bitcoin (BTC) lifted on news that Argentina defaulted on the national debt.
  • China announces a goal date for the digital Yuan.

Bitcoin (BTC) got off to a strong start this week amid news that Argentina had defaulted on $65 billion worth of foreign debt. Argentina’s already dire financial crisis has been compounded further by the COVID-19 global pandemic. The weekly volume of BTC purchased in Argentinian Pesos has skyrocketed more than 1,000% since January 2018, evidence that investors are searching for ways to decouple from the Argentinian Peso.

Meanwhile, the Chinese government said that it aims to have the digital Yuan ready in time for the Winter Olympics in 2022. Cryptocurrency investors continue to watch global developments surrounding centralized digital currencies. News over the last few years about this subject has encouraged cryptocurrency investors, perhaps due to the fact that it further legitimizes digital currencies in general.

In other industry news, cryptocurrency payroll service Bitwage announced the launch of a Bitcoin (401) k plan which will allow companies to give their employees a Bitcoin retirement plan.

This Week’s Topics

  • Coinbase acquires crypto prime brokerage firm Tagomi.
  • U.S. legislator submits a bill for consideration of blockchain national strategy.

Next Week’s Market Forecast

The price of Bitcoin (BTC) has oscillated back and forth between $8,500 and $10,000 over the past month. Investors looking for a big move one way or another following the BTC halving have been disappointed. Bulls want to see BTC surpass the psychologically important $10,000 level. BTC was able to get over the level in February of 2020 but quickly reversed, sending prices plummeting. While BTC has struggled at the level once again, it has not broken down this time.

The second most popular cryptocurrency, Ethereum (ETHUSD) has also seen volatility contract. Last month ETH printed an inside month, and this month it is printing another high range inside month. An inside month occurs when the entire range is encapsulated within the previous candle. (Meaning the high is lower than the previous high, and the low is higher than the previous low). Often times price contraction can lead to expansion.

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