Mercados al día is an exclusive summary of the news that moves the bitcoiner economy. It is sent in advance by email to a list of subscribers and then published every Monday in CriptoNoticias. If you want to have the information in advance,subscribe to the list here.
After a promising rally in the price of bitcoin in the first two weeks of February, the escalation of tensions between Russia and Ukraine caused a sustained decline in the price of BTC. Since last Wednesday, both the price of bitcoin and that of the main traditional stock indices have been in decline.
As CriptoNoticias reported last Thursday the 17th, the BTC price fell 8%, from around USD 45,000 to USD 40,260. The price kept fluctuating above the important barrier, until this Friday the 18th in the afternoon. As of this Saturday, the $40.00 support has clearly given way and at the time of writing, BTC is trading at $38,423, a level not reached since February 3.
Bitcoin fell back to the level it was in early February. Source: TradingView.
An analysis of CriptoNoticias pointed out this Monday, February 14, that, among other reasons, the statements of the president of the United States and other important officials about an imminent Russian invasion of Ukraine, had influenced the fall in the price of BTC, along with that of important stock market shares. On the other hand, the downward trend of bitcoin would have been accentuated after the announcement of the largest increase in inflation in four decades, on Thursday, February 10.
The scenarios of bitcoin below USD 40,000
The fact that the price of BTC has made occasional forays in the past two days below $40,000 has investors wondering what would happen if this psychological mark gives way as support. CriptoNoticias examines some of these scenarios in an article published this Saturday the 19th. The trader and analyst Bob Loukas, for example, highlights the close correlation between bitcoin and traditional assets and maintains that there is a confirmed bearish trend. On the other hand, @juanbiter, the analyst Juan Rodríguez, considers that a visit to the level of USD 37,000 for BTC will be seen soon and that the range in USD 30,000 and USD 37,000 looks much more solid, in the event of a further price decline.
Investors seek hedge in bitcoin futures
The planned increases in interest rates, as a resource against inflation in the United States, would begin next March, according to statements by the Federal Reserve. This has stimulated an increase in investment in bitcoin futures contracts, according to a Glassnode report, commented by CriptoNoticias. The study points out that in 2022 there is a growing dominance of options putwho bet on the price dropabout options callwhich foresee an improvement in the price.
Featured chart of the week
The number of daily active entities on the Bitcoin network has served as an indicator of network activity. Also, the highs of this metric have coincided with or anticipated local highs or all-time price highs. In December 2017, coinciding with a historical maximum, 350,000 daily active entities were exceeded. In January 2021, in the middle of the bull run, and without coinciding with a historical price maximum, the record for this metric was produced, more than 400,000 daily active entities.
After the decline, a minimum can be seen on the graph that coincides with the price minimum on July 20, and then there is another increase close to the historical maximum of November of that year. In recent days, there has been an increase in the number of daily active entities, coinciding with the rebound on January 24. The lows of the metric follow an increasing path, which indicates, according to Glassnode, a strengthening of the network in the long term.
Boom in demand could push bitcoin to $1 million
Analyst Jurrien Timmer, from the asset management firm Fidelity Investments, said Thursday that according to Internet and cell phone adoption patterns, bitcoin could reach the price of one million dollars, as reported in this means, medium. Although it does not specify a specific date on which such a milestone would be achieved, it is inferred from the curves presented that bitcoin would exceed that emblematic mark towards the end of this decade.
Bitcoin companies give clues about BTC support
When looking at the top four public companies that have acquired bitcoin, amassing more than 180,000 BTC, the average price of the coins acquired by each of them could give an idea of the levels those whales would defend in the market, as reported by CryptoNews.
In the case of MicroStrategy and Tesla, with 125,000 BTC and 43,200 BTC respectively, the average price is close to $30,000. Square and Marathon, meanwhile, paid average prices of $27,000 and $23,000, respectively.