Bitcoin began a corrective phase and has lost just over 10% from its highs. On Thursday of last week there was a large number of outflows from spot Bitcoin ETFs. In absolute value it was a significant amount, but in relative value it was only 2.8% of the assets managed. But it had an infection in the psychology of the masses. In such a way that we have found that right now people are more bearish and doubt the rise of Bitcoin. Therefore, based on the theory of contrary opinion, We should consider as the most likely scenario that a floor is nearby.
What could be the “excuse” for Bitcoin rises? It’s in Trump, who promised that on his first day in office as president of the United States he would sign an executive order declaring Bitcoin a reserve asset of the United States.
From the technical side, on the Bitcoin chart we are seeing that it is displaying a lateral movement, has stopped at 92,000an area that has been touched three or four times and so far it has bounced back. We have also drawn a straight bullish guideline joining the lows of November and December 20. Therefore, As long as that line and the support of the 92,000 zone are respected, we will consider that it is developing a lateral movement, a corrective phasea consolidation phase within the uptrend.
Regarding the reduction of US public debt by establishing a Bitcoin reserveI think that for it to be reduced by a significant amount, the price of Bitcoin against the dollar would have to rise very strongly. At least at a level of at least 20% per year. Otherwise, it will practically not reduce anything. And for that we would have to wait 20 years. Q
Lastly, regarding the Russia’s role with Bitcoin. We must start from the point that social discontent in Russia is increasing because inflation is very high, which has led to significant increases in interest rates. But inflation does not subside. For this reason, Russia has wanted to get on the Bitcoin “train” and in Transnistria, a territory of the Republic of Moldova that is under the protection and control of the Russian authorities, a technology park has been established where the installation is being encouraged. of miners. One fact: mining a bitcoin in Ireland costs about $300,000, in Iran $1,300 and in Transnistria it is almost free, because Gazprom supplies gas for free, so they get energy at very cheap prices and can mine there. Therefore, what the Russian government has done is encourage the installation of miners, so that they can later register it anonymously, using mixers so that no one knows who the true owner of Bitcoin is.