Bitcoin (BTC) Swings
Bitcoin continues to show high volatility. Last Friday, March 4, BTC was down 5% in the evening, falling below $39.000. By Monday morning, Bitcoin was below $38.000. On Tuesday, BTC reached the local minimum of around $37.000. This was followed by a sharp but short rebound — quotes of the first cryptocurrency rose above $41.500 by Wednesday morning, but less than a day later, the price returned to levels of $39.000. It stayed there on Friday morning, March 11. The total decline in Bitcoin price over the last 7 days was about 6%.
Bitcoin Predictions
Trader Nicholas Merten predicted the sharp rise in the exchange rate observed during the week. He pointed to the indicator called the Mayer Multiple. According to it, Bitcoin fell into the oversold zone, from which a rebound should follow.
For reference: The Mayer Multiple is an oscillator indicator that tracks Bitcoin’s deviation from its 200-day moving average.
Mike McGlone, Chief Commodity Strategist of Bloomberg, said in an interview with blogger and crypto analyst Scott Melker that Bitcoin is currently forming the basis for strong growth in the future, with the cryptocurrency price reaching $100.000. The Bloomberg strategist focused on the fact that BTC has fallen by 15% over the year, while the NASDAQ index has declined by 17%. This is important because Bitcoin volatility was three to four times higher than the volatility of the NASDAQ index, the strategist said.
What Analysts Say
Analysts at Santiment note that Ethereum is trading close to the S&P 500 Index and remains highly correlated to the tool. As of early March 2022, the largest-cap altcoin correlates more with the S&P 500 than Bitcoin, they said.
Santiment experts also found an increase in the number of coins on large USDT addresses. According to their observations, the total value of stablecoins at addresses with balances between 10.000 USDT and 1 million USDT increased by almost $1.06 billion over the past month, representing 2.7% of the total supply of Tether’s “stable coins.” The company is convinced that big players seek to buy BTC at a lower price. Thus, by accumulating stablecoins amid a falling Bitcoin, the whales are “building up their buying power.”
Changes in Global Crypto Acceptance
The White House released a strategy to regulate digital assets. Bitcoin reacted sharply to this news on Wednesday, March 9. But it turned out that the US presidential administration and Congress will continue to develop the state policy on cryptocurrencies. The decree does not contain any specifics. Against this background, the first cryptocurrency quotes quickly returned to their previous positions. However, the decree somewhat systematized the development of cryptocurrency legislation in the US, so more specifics can be expected within a year.
Meanwhile, authorities in Dubai have passed a law on virtual assets and established a regulatory body. This was announced by the emirate’s Prime Minister Sheikh Mohammed bin Rashid Al Maktoum. The governing body is called Dubai Virtual Assets Regulatory Authority. It will cooperate “with all related entities to ensure maximum transparency and security for investors.” Binance has already applied for a local license. Its representatives intend to occupy the niche of the virtual asset service provider in the Dubai World Trade Center, which is a free economic zone and actually legalized the crypto market here last September.
Note that this is not all the crypto news over the past week, but only a cursory overview of the most high-profile newsbreaks. More updates can be found on our website and social networks daily!
