Inflation Stonewalling Bitcoin Progress
Since the beginning of this year, the price of Bitcoin has been declining; it dropped below $50,000 in late December 2021. Since then, a series of industry incidents in May and negative macroeconomic policies have caused the crypto asset to lose most of its price gains over the years.
The biggest industry event was the Terra blockchain crash, which indirectly led to Bitcoin falling from the $30,000 range. Bitcoin was an important part of the Luna Foundation Guard’s $1.3 billion support fund. As Luna (now Luna Classic) plummeted, the Luna Foundation Guard (LFG) sold off its Bitcoin reserves, creating more supply in an already strained market.
Additionally, the latest inflation data released by the US Federal Reserve has not been encouraging. The Fed is working to lower inflation and has been raising interest rates to address increasing costs. Fed Chairman Jerome Powell stated that benchmark interest rates have been increased by three-quarters of a percentage point. This is not expected to be the last rate hike, as Fed officials mentioned that this could continue into 2023, with a target of a 4.6% overall inflation increase.
Bitcoin has been impacted negatively since the news became public on Wednesday. The foremost cryptocurrency dropped below the $18,900 price peg on Wednesday. Bitcoin has made some gains and is back above the $19,000 mark. But the digital asset is still below the $19,500 range after climbing 3.4% in the last 24 hours.
Bitcoin’s strong performance affiliation with the traditional financial markets, like stocks, has not gone unnoticed by those who invest in Bitcoin. The stock market swayed from the Fed’s new interest hike as the S&P 500 declined 10% on Wednesday.
However, Bitcoin is known to be tenacious. Here are some reasons we believe it may return to the $22,000 price peg in the coming days.
MicroStrategy Holding Diamond Hands
MicroStrategy’s executive chairman Michael Saylor continues to display unshakable faith in the deflationary capability of Bitcoin. According to a post, Saylor stated that the business intelligence software company had added another 301 Bitcoins to its already impressive Bitcoin bank. According to its Securities and Exchange Commission (SEC) filing, this cost the US company $6 million to purchase. MicroStrategy now has 130k Bitcoins in its holdings.
Since August 2020, MicroStrategy has been a standout proponent of using Bitcoin. Thus far, the company has spent $3.98 billion on purchasing its 130k Bitcoin holding at an average price of $30,639 per coin.
Still Bitcoin bullish, MicroStrategy is looking to raise an additional $500 million to purchase more Bitcoins in the coming weeks.
With growing Bitcoin purchases from institutional giants like MicroStrategy, Bitcoin may soon make a comeback.
SMA 10 Shows Promise
Technical indicators also support a possible rally in the short term. Bitcoin’s smooth moving average indicator (SMA) supports this notion. The SMA shows the Bitcoin price moving close to the indicator price of $19,681 in the coming days as Bitcoin begins to enjoy a slight bullish run.
Its relative strength index (RSI) figure of 43.73 shows that it is still in the underbought zone, making now a great time for investors to buy Bitcoin and rise with the market. However, the moving average convergence and divergence (MACD) indicator takes a more neutral position.
Tamadoge Holds Most Potential
Investors can still earn profits even as the crypto market struggles. The key to doing this is identifying potential crypto gems early enough. One of the fast-rising crypto projects is the Tamadoge project.
Borrowing inspiration from the popular DOGE meme coin, Tamadoge is a combination of non-fungible tokens (NFTs) and a metaverse project. The new cryptocurrency protocol enables users to raise Doge-like NFTs and battle one another. In the Tamaverse, users can watch, interact with one another, and explore different aspects of the project. Given its huge potential, the Tamadoge presale was a huge success. The development team sold $19 million worth of its tokens a month before its official close date.
Also, the TAMA token is set for its first listing on a major crypto exchange by September 23rd. Early-bird investors can easily profit as the digital asset could rise in value when it launches on a centralized exchange tomorrow.
Related News
- Is Crypto Dead Now – Bitcoin Price Prediction After FOMC Crash
- Can Bitcoin Eventually Replace Real Estate as Asset of Choice to Fight Inflation?
Tamadoge - The Play to Earn Dogecoin
- '10x - 50x Potential' - CNBC Report
- Deflationary, Low Supply - 2 Billion
- Listed on Bybit, OKX, Bitmart, LBank, MEXC, Uniswap
- Move to Earn, Metaverse Integration on Roadmap
- NFT Doge Pets - Potential for Mass Adoption