I have been following Bitcoin lately and there are a lot of things that are happening which could be discussed.
Like many other people, I am curious about the future of Bitcoin as there have been a lot of events surrounding it.
Let’s go over what’s happening and what it might mean for the future of Bitcoin.
To begin with, there is this big story about Mt. Gox, which was a Japanese crypto exchange that went bankrupt in 2014. They still have approximately 142,000 bitcoins to give back to their creditors who will get some advantages from them. This has got people talking because nobody knows what those who get these Bitcoins will do with them.
Will they sell them immediately after such a long period of waiting only to realize that prices are not like what they expected?
Or will they keep them since they are expecting prices to rise in the future?
This ambiguity has unsettled many individuals hence impacting the forecasted price of this currency significantly.
Another is what has shaken the market recently in Germany.
The government of the country sold off several Bitcoins they had confiscated, but instead of using an auction, it sold them directly on the exchanges. As a result, an exceptionally large amount of Bitcoin entered into the market at once and this resulted in its prices dropping. This step by Germany made people even more concerned about the immediate price of Bitcoin.
Now let us talk technicalities.
Despite these happenings pushing down the price there could be some signs that all may not be hopeless …. For instance, mining bitcoins have been becoming cheaper as time goes by, which makes miners tend to keep their coins rather than release them into the market.
Moreover, if you look at Bitcoin’s price charts you will see that it has been oversold suggesting that it could bounce back any moment. These technical indicators point out that we might witness some short-term support for Bitcoin’s price.
Again, it depends on the US Federal Reserve Bank's actions.
They may cut interest rates in a couple of months. If they do, it will increase the amount of money going into circulation and weaken the dollar at the same time. Usually, Bitcoin goes up when the dollar comes down because people look for alternative places to put their money instead. It can give a push to Bitcoin in the medium- and long-term perspective.
Accordingly, while we see that Bitcoin is undergoing difficult moments, I still believe its recovery is possible. Also, the Mt.Gox situation and German BTC sales made some obstacles; however, tech indicators along with potential economic shifts serve as potential reasons to stay positive. It’s about watching what happens next and how it influences prices on the market.