What’s next for the Bitcoin price?
Bitcoin has set new price records in recent weeks and then plummeted noticeably. Therefore, many investors are asking themselves the question of how the Bitcoin price will continue – will it go up again or further into the price basement?
Opinions on the question of the Bitcoin Hero price differ. There are two views opposing each other as „bulls“ and „bears“.
The Bitcoin bulls
Thus, the positive-minded, „bullish“ view assumes that the Bitcoin price is only „breathing through“ in chart terms. Setbacks are healthy (from a stock market perspective) to shake out weak hands and ensure that short-term speculators and nervous small investors leave the market. The move shown now is typical for Bitcoin, he said, and shows consolidation for new highs.
The Bitcoin Bears
The „bearish“ view is of a different opinion. Bitcoin is showing a „head-and-shoulders“ pattern chart-wise, which is a sign of further falling prices. Moreover, Bitcoin’s soaring price has reawakened public interest. This also calls government regulators to the scene, who would soon intervene.
Who knows where the Bitcoin journey will go?
Both sides have arguments that cannot be dismissed out of hand.
The bears rightly point out that the states certainly have little interest in a parallel currency. This is especially true in view of all the new money in the market, which will probably lead to inflation of the fiat currencies at least in the medium term. A flight to alternative cryptocurrencies will not be welcomed by the states and they might intervene. Another reason could be the protection of the planned state cryptocurrencies.
For example, the president of the European Central Bank currently said in an interview:
[Bitcoin] is a highly speculative asset that has made some dubious deals possible, as well as some (…) very reprehensible money laundering activities.
On the other hand, more and more big companies are discovering cryptocurrencies for themselves. Considering their powerful lobby in the US and Europe, these companies will certainly not let it happen so easily that their investments are wiped out by laws. In addition, it is likely that some politicians have invested in cryptocurrencies or are using them to finance their election campaigns and are therefore unlikely to support a ban on them.
In general, the rhetoric against Bitcoin is nothing new and part of the usual „saber rattling“ against change. In addition, there are the technical difficulties of banning a decentralized asset that can easily be evaded. In this respect, an indirect approach such as taxation or stricter regulation of crypto exchanges would be more likely in the event.