Despite the usual market trends of the weekend - i.e. low volume and nominal volatility - there are key updates and news breaks the Bitcoin Bravado team feels compelled to share.
With respect to the market, Bitcoin is $8300 USD, with around 4.9 billion USD in trading volume. Volume has been steadily decreasing since the 14th of May falling nearly 30% to its current level. The price of Bitcoin since the start of Consensus on Monday, May 14th, has fallen 4.5% as well. ๐
From a technical perspective, we alluded to the $7800 region as a great opportunity for positive swing in $BTCโs price. Buyers at the $7900 level ended up front running the major support at $7800, which gives us confidence that there is still tremendous demand in the market. If you are an elliott wave theory supporter ๐, then it looks as if Bitcoin has just completed its wave 2 and will now head to what is traditionally the most aggressive wave, wave 3. Our targets for wave 3 are north of the psychological barrier of 10k.
The bearish trend in the crypto markets over the course of โblockchain weekโ in NYC may seem confusing to many of you. ๐คทโโ๏ธ That aside, it is in our opinion that a majority of the attendees of Consensus were not likely to be buying large amounts of cryptocurrency during the conference. If a financial representative of a fund or other institutional investment product attended blockchain week, they would most certainly need to run their findings and opinions by the rest of their investment team once they returned home.
Additionally, within the past 48 hours, news has emerged concerning the potential use of cryptocurrencies in the funding of political campaigns in Colorado. Coloradoโs Secretary of State, Wayne Williams, proposed the use of cryptocurrency donations as a funding source for political Campaigns in the state. Should the proposal receive acceptance, political candidates could receive Bitcoin and various other cryptocurrencies to fuel their political scheme for election. All donations would be valued at current time. Should the donation increase in value, the donor would receive that money back.
In context, if you donated $100 worth of BTC to Campaign X, and that donation increased by one dollar, making the total $101 dollars of BTC, you would get the additional dollar back.
Wayne Williamsโ proposal comes not far after the Federal Election Commissions decision to accept cryptocurrencies. In 2014, New Hampshire legalized the issuance and acceptance of cryptocurrencies in political campaigns, however it has taken 4 years for other players to enter the space.
Lasltly, a positive development took place yesterday in the form of a 250 million USD Tether issuance. This was the first issuance since late March and 250 million is a substantial sum. This does not mean we believe money will flow immediately into the market, but it would not surprise us if Bitcoinโs price exceeds 10k in the coming weeks. The issuance of Tether almost certainly coincides with Consensus as major institutional financial players were in attendance this week and will use methods such as Tether and OTC markets to enter the space.
Over all, we view these events as comforting. As the proposal makes it way across regulatory boards and the potential effects of more Tether affects the market, we will provide updates.
