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Since Bitcoin’s initiation in 2009, Bitcoin has gradually outperformed other traditional alternative investment classes, finally taking over gold in 2020. In fact, for a major portion of the Indian investors, Bitcoin has become the preferable and more trusted asset class. As Bitcoin performed exceptionally well amidst the Covid-19 pandemic in 2020, crypto experts and analytics had hoped for Bitcoin to continue its winning streak in 2021 as well. However, as Bitcoin hit an unexpected low of below $30,000 in June, 2021, many bearish arguments are coming up, suggesting we’re entering a bear market.
Bitcoin touched an all-time high of over $64,000 back in April 2021, but since late May, the crypto has largely traded between the marks of $30,000 and $42,000. As quite a large number of crypto traders hold bullish opinions regarding Bitcoin even when a massive Bitcoin sell off continues taking place, at the moment there are many back and forth arguments supporting both the bearish and the bullish sentiments.
In this post, we have compiled the strongest arguments on both sides, so ultimately you can make knowledgeable investment decisions when it comes to Bitcoin, or crypto in general, since whatever happens with Bitcoin also hugely impacts the crypto market overall.
What’s more, Mancini also stated that the forming of “an inverse head and shoulders” is being witnessed. As he explains, “Inverse head and shoulders have two shoulders, a head, and a neckline, and typically push bullish if and when the neckline is broken”. In this particular case for Bitcoin, the neckline is the 200-Day Moving Average, which “has been a stalwart for Bitcoin price action since June”.
In fact, as a PRS Legislative Research report suggests, the Cryptocurrency and Regulation of Official Digital Currency Bill proposal has already been listed for introduction in the Parliament of India for discussion and passing. The bill is scheduled to be brought before the Parliament during the Parliament’s Monsoon Session, which was slated to begin on July 19, 2021.
It’s been stated that this bill includes the plea for the Indian government to consider and facilitate the creation of India’s own CBDC, or central bank digital currency, while forbidding private crypto ownership within the country.The news of this bill that will take us one step closer to the efficient regulation of crypto markets in India has caused an explosion of investments in digital assets within the country, hence the volume spike crypto exchanges are seeing. Reportedly, just in the month of May, Indian investors had collectively put around $6.60 billion behind various crypto assets, which marked a resounding rise of 615% from the $923 million of April 2020.
As Peter Roffman – the innovation head for S&P Dow Jones Indices, suggests in a press statement that yet more crypto market indices are to be launched, there’s no doubt that this event will result in further adoption for Bitcoin and other cryptocurrencies.
As another win for Bitcoin, Venezuela has connected their national currency to Bitcoin- since Venezuela deems Bitcoin to be a currency more stable than their own. The government has issued a BV Wallet as their central bank digital currency, where the Venezuelans can swap out their existing currency for Bitcoin.
And there were all the crucial bullish and bearish Bitcoin arguments! We do hope this post helps you make better investment decisions. As always, keep in mind that when investing in crypto, you should always be prepared to face the worst, since cryptocurrency markets are always exceptionally volatile.
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