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Bitcoin and the crypto markets continue their descent this week: Many coins face-sensitive losses, investors are waiting or getting out – also cryptocurrency tips to protect yourself on it. A top analyst is also warning: Bitcoin is running out of time. However, there are also positive signs apart from the price because a specific crypto sector is booming.
Bitcoin has been fighting for upward momentum for weeks – in vain. For example, the critical currency has attempted a push higher several times in the last seven days but has not gotten further than $43,722. The #1 cryptocurrency is currently trading at $41,950 (data from Coinmarketcap.com), down 3.81% for the week. In short: BTC seems to keep mining. However, the second most valuable cryptocurrency, Ethereum, also recorded a minus: Investors complained about a more than 6% decline. The continued weakness has pushed the total crypto market cap down to $1.99 trillion.
As reported by CoinShares, Europe’s largest digital asset manager and digital asset investment products experienced outflows of $73 million in the seven days ended Jan. 14.
“Bitcoin should hurry up.”
Investors are reducing their risk appetite, ultimately affecting the speculative areas of the world markets the most. To prevent worse, what is needed now is some green on the chart, a rally or momentum that gives investors confidence again. Trading veteran Tone Vays, for example, believes so. In a recent analysis, he comments: that Bitcoin must end the week strongly; otherwise, there is a risk of a new crash. While he is still optimistic that Bitcoin can end January above $49,000, he adds: “There are only ten days left in the month. So Bitcoin had better hurry up in the next 48 hours. Otherwise, it won’t happen.”
His conclusion: the week must end positively – “otherwise Bitcoin will have a problem.” But what could BTC initiate in this regard? What development will push the cryptocurrency towards an all-time high? Top analyst “PlanB” was also surprised – and started a survey on Twitter.
“What will trigger Bitcoin’s next surge?” he is currently asking his more than 1.7 million Twitter followers. The result is clear: Of the current 56,712 participants, the overwhelming majority (48.4%) vote for a Bitcoin spot ETF in the USA. Many experts reckon that such an exchange-traded fund could bring many new investors on board.
The second place, with 23.2%, is “next El Salvador”: a country that chooses to make bitcoin legal tender. In 3rd place: “other reasons” – among other things, a supply shock is mentioned, i.e., too few bitcoins with increasing demand. It will be interesting to see how this will materialize by the end of the month.
Bitcoin is declining – blockchain gaming is booming.
The crypto courses may tumble or stagnate, but the industry’s growth can be seen elsewhere. Because: The blockchain gaming sector is booming. There are almost 400 actively used blockchain games now – an increase of almost 100% compared to last year. Moreover, people are gradually discovering the division, the Metaverse, the software, and investing. Estimates, therefore, assume that 2022 will be a successful year for such projects.
Facebook is undoubtedly feeling some market pressure. Companies like Microsoft are also developing avatar-based interfaces for teams, Google also has its assets, but they don’t necessarily have to rely on VR. On the other hand, Facebook has to do something; fewer and fewer young people are using it as a social network, so the company needs a new market.
It is also suggested by the recent move by the US software giant Microsoft: the group has just bought Activision Blizzard, one of the biggest video game companies in the world.
Price: a whopping $68.7 billion. However, not only the well-known brands were decisive. Instead, the deal is also intended to help expand in a critical sector: the Metaverse. The takeover will “deliver building blocks for the Metaverse,” according to the official statement. Satya Nadella, Chairman and CEO of Microsoft, said that games would be essential in metaverse development.
The State of Bitcoin
Bitcoin technically is about optimizations, cryptographic/mathematical, hardware, and software improvements for the efficiency and security of the protocol. Building and linking new layers to the Bitcoin protocol is a crucial part of this. To clarify technical innovation, a comparison with the development of Internet protocols is a logical analogy.
We will probably get a clear consensus on one phenomenon: the year 2020 will go down in the history books. On the other hand, history has been made in several areas: a virus that has the entire world in its grip, regulations for Bitcoin companies in the Netherlands, the third halving, and the bitcoin price to a record high. Although extreme situations occurred in 2020, there are exciting but also worrisome developments in which I want to delve deeper into a trilogy of articles with the central theme: the status of Bitcoin.
In this first part, I mainly want to focus on the technical status of Bitcoin. We have just entered the year 2021; Bitcoin has been 12 years old since three days ago and, therefore, an excellent opportunity to look back at the technical developments of the Bitcoin protocol in 2020. In addition to the technical innovation, I also want to discuss the social and political developments in regulation, privacy, and the future. The year 2020 has exposed exciting phenomena. In three articles, I try to create clarity in the status of Bitcoin; technical, social, and future trends.
Bitcoin is constantly under pressure from various technical, political, and social attacks. Technical attacks aim to sabotage the network, steal bitcoins, or other forms that exploit weaknesses. Bitcoin is an economic phenomenon, and for the first time in history, we have a money system that eliminates corruption. Bitcoin does not discriminate against who you are – it belongs to everyone. Perverted and hidden agendas, corrupt governments, and powerful institutions and individuals can be difficult to manipulate a monetary system based on mathematics. Bitcoin trading also continues to grow in third-world countries, and this is a positive trend for people who face daily nuisance from money manipulation, oppression, and corruption.
Thank you for reading!