30s Summary

Bitcoin’s price fell by 4.1% between 21st and 22nd October, sparking debate about its ability to recover and surpass the $67,000 mark. Some uncertainty in the larger economic landscape persists, but there are strong reasons to believe in Bitcoin’s ongoing rise. Supportive governmental attitudes towards cryptocurrency, high demand for Bitcoin ETFs, and a steadily increasing hashrate all suggest positivity surrounding Bitcoin’s future. The currency’s safe-haven status, akin to gold, also positions it well against economic uncertainties. Billionaire Paul Tudor Jones backs Bitcoin investment as protection against potential inflation and devaluation of the US dollar.

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From Oct. 21 to Oct. 22, the price of Bitcoin fell by 4.1% after hitting a wall at $69,500. This drop wiped out the gains made in the previous week, causing folks to question whether Bitcoin can bounce back and cross the $67,000 mark again, and what might help it do so.

The S&P 500, another pretty important financial index, also fell from its highest-ever level on Oct. 18. This likely made Bitcoin investors a bit more wary. However, the reasons causing the stock market to drop have mostly been good news for alternative forms of investment. Gold, for example, reached its highest-ever price on Oct. 22.

Famous billionaire and hedge fund manager Paul Tudor Jones said in an interview with CNBC on Oct. 22 that he thinks the US government will continue to cause inflation no matter who the President is. Because of this, he’s suggesting folks invest in gold and Bitcoin, adding that most people are way too underinvested in these commodities.

Jones believes the US will end up spending more money than it currently plans to, meaning returns on long-term US Treasury bonds will likely increase as the country tries to deal with its debt through inflation. He also suggests that this could devalue the US dollar significantly over time.

The fact that Jones is still backing Bitcoin even as it hovers around the $69,000 mark is big news. This seems to reflect some doubts about the Federal Reserve’s ability to smoothly manage the economy.

However, despite some uncertainty over the bigger economic picture, there are still strong reasons to believe Bitcoin’s upward trend can continue. The fact that people are still buying gold despite tech companies making huge profits suggests that confidence in the stock market isn’t so high. Just like gold, Bitcoin is usually seen as a good investment to protect against economic downturns.

Trying to accurately predict the outcome of US presidential elections is a tricky business. However, Kristin Smith, CEO of the Blockchain Association, is confident that the next US Congress will be the most supportive of cryptocurrency they’ve ever been. This is due to a number of first-time candidates with pro-crypto stances, and a growing number of established lawmakers showing interest in the topic as well.

Bitcoin exchange-traded funds (ETFs) have recently been in high demand, adding to the belief that Bitcoin can surpass $67,000 again. Just over a week ago, these funds attracted almost $2.7 billion, pushing the total amount of money being managed in these ETFs to $51.7 billion, going by data from Farside Investors and Coinglass.

Bitcoin’s hashrate, which measures how much computer power is being used by those validating Bitcoin transactions, keeps growing, suggesting that the people who mine Bitcoin remain positive about its long-term future.

A higher hashrate means more investment in advanced tech for mining, a process that normally needs at least 18 months to turn a profit. If miners don’t feel the need to sell their Bitcoin in the short term, this could help Bitcoin rise in value again and keep above the $67,000 level.

Source: Cointelegraph