Bitcoin has been present in our lives for more than a decade. During these 10 or so years, we have seen turbulent activity that led to disturbances in the crypto world. Bitcoin prices reached an all-time high at the beginning of 2018, leading to the appearance of many new digital currencies on the global crypto market.
Currently, there are over 2000 digital currencies available to people around the globe. The market continued to expand, and crypto assets gained in popularity. With a rising interest in crypto, the world started accepting it as a payment method, adding it to stores, and installing crypto ATMs all over the world.
It’s not surprising that many people have decided to embrace digital currencies, including Bitcoin, as you’re ultimately acting as your own bank. You are in charge of your digital assets, and you need to keep them secure and safe.
It’s challenging to keep up with the demanding and continually changing world of cryptocurrencies so, understandably, you might need some help. By visiting learncrypto.com, you can get just that. Moreover, you can keep up with the current events regarding Bitcoin and find out what you can expect to see in the upcoming weeks.
US Elections Could Influence Bitcoin
As usual, Bitcoin remains responsive to micro phenomena, especially during the Q4 and with the US elections approaching. The change in leadership could result in noticeable turbulence, and analysts warn that the US dollar currency index (DXY) as a micro indicator could be exposed if Democrats win. If Biden enters the White House, it could drive DXY into its 2018 lows.
Why is this important for Bitcoin? Well, Bitcoin has a long history with DXY, and new lows could turn out to be a blessing for holders. August 2020 saw a rise of the BTC/USD to $9,500, together with DXY dipping slightly above 92 points. However, the situation in 2018 was a bit different when DXY dropped to 89 points, which is 4% lower than it is now.
Biden’s win could bring DXY and the trade-weighted dollar to their 2018 low. All the risks concerning the 2020 US election could lead to a sudden weakening of the dollar.
Brexit Leaves a Mark in Europe
It wasn’t unexpected that the United Kingdom leaving the European Union would have a major effect on Europe — the same goes for digital currencies. The deadline for a consensus is approaching, with no signs of an agreement on exiting the EU.
Similarly, in the USA, there have been no signs of agreement regarding the stimulus package. Americans expect the stimulus package after Treasury Secretary Steven Mnuchin verified the issuance of a second £900 stimulus check.
With all that going on, the stocks are still up — S&P 500 futures gained 0.25% before opening that took place last Monday. However, China has been leading the way with a weakening yuan and investors hoping for more foreign funding.
Great Week for Bitcoin Fundamentals
Contingent on the metric in question, the hash rate hit a new all-time high last weekend, indicating that more computing power has been dedicated to mining than ever before. To be precise, the hash rate has hit 155 exahashes per second (EH/s). The task of precisely measuring the hash rate isn’t easy, and different tools will produce opposing results. However, one thing is clear — Bitcoin’s miners are buoyant.
There is a popular theory indicating that highs in hash rate and jumps in network difficulty will lead to higher Bitcoin prices in the future. Currently, the correct hashrate-adjusted price for Bitcoin is around £25,000 per coin.
For now, it’s essential to scrape through the 2018 supply overhang that has been haunting all of us, as well as the legacy exchange wash-trading supply excess. Once that’s over, we will see a new ATH (All-Time High).
It’s difficult to predict what’s next and if the hash rate will reach new heights. Currently, there are no precise predictions, as the next readjustment does not show if it’s going to up or down. Most likely, it will stay as it currently is.