Believers Pump Up the Volume ahead of “Bitcoin 2022”
Staunch believers in Bitcoin are in a good mood. After an abysmal start to the year, the world’s first digital currency is making its way back up to what some see as a step toward bull territory. The coin has slowly and steadily inched toward the mid $40K, even testing $48K last week. And on top of all that, this coming week brings a convergence of Bitcoin believers to Miami, Florida, for the world’s largest Bitcoin conference, Bitcoin 2022.
“Now, with the Bitcoin community descending on Miami this week for the Bitcoin 2022 conference and one high-profile developer teasing ‘big surprises,’ the cryptocurrency market could be in for a shake-up,” Forbes contributor Billy Bambrough reported this weekend.
“Last year, the Miami Bitcoin conference was hailed as the largest Bitcoin event in the world with Bitcoin's huge price explosion just months earlier fueling unprecedented interest in cryptocurrency.”
Bitcoin Ends March with a Rally
Despite the ongoing war in Ukraine, which has spurred economic uncertainty and traditional market fluctuations, Bitcoin and other digital currencies are slowly fighting their way back into more positive territory.
“Extended gains from a late Sunday rally, when the cryptocurrency broke past the key level of $45,000 and erased its losses for 2022,” CNBC reported Sunday. “It last traded 6.7% higher at $47,914.35, according to Coin Metrics. Earlier in the day it traded above $48,000, for the first time since Dec. 31.”
Several outside factors appear to be contributing to the trend, including talk among some nations of following El Salvador’s lead in recognizing Bitcoin as a national currency, renewed interest among institutional investors, and continued discussion of Central Bank Digital Currencies (CBDCs) which signal growing acceptance of the value of digital assets.
“Throughout the last six months, crypto has shown its resilience and relevancy, even as strong macroeconomic headwinds have disrupted traditional markets by remaining within range. Now, crypto is center stage with its biggest opportunity to shine,” Chris Kline, chief operating officer and co-founder of Bitc told CNBC. “For example, Goldman Sachs last week became the first major U.S. bank to trade Bitcoin over the counter, and Cowen said it will soon allow institutional clients spot Bitcoin trading. Ray Dalio’s Bridgewater has also said it’s about to make an investment into a crypto fund.”
The Road to Recovery
As crypto candles turn greener, analysts are now categorizing the market as moving away from the bear and possibly toward a strong bull.
“The process of bottom formation and investor capitulation in a bear market is often a lengthy and painful process, and Bitcoin is by no means out of the bearish woods yet,” Glassnode analysts wrote on March 28 in a post titled, “The Road to Recovery.”
“Bitcoin bear markets can be long, painful, and drawn out, however they have the ultimate result of reshuffling supply ownership away from weaker, and towards stronger hands,” the analysts said. “Bitcoin has seen fairly heavy accumulation occur between $35k and $42k, suggesting many investors see a value zone in the current consolidation range.
“Risks remain that these buyers may be sensitive to any downside volatility. However, the degree of accumulation that appears to have taken place during this consolidation range, especially in the face of world changing macro and geopolitical risks, is truly a signal of strength and conviction in Bitcoin.”
Bitcoin Milestone: 19 Millionth Bitcoin has been Mined
It’s all about supply and demand, isn’t it? And Bitcoin recently hit a milestone as the 19th million coin has been mined, “leaving less than two million BTC remaining for miners to put in circulation as the Bitcoin network tick-tocks its way through a fixed issuance schedule until it reaches the 21 million supply limit and doesn’t create any new bitcoin ever again,” Bitcoin Magazine reports.
“The milestone demonstrates how Bitcoin’s creator, Satoshi Nakamoto, was able to join together decades of research in different areas of computer science to achieve scarcity in the digital realm, a unique feature central to Bitcoin’s value proposition,” the magazine explains.
As fewer Bitcoins are left to be mined, the real potential for the coin becomes even more clear to crypto enthusiasts.
“With just 2 million BTC left to mine as rewards and an influx of Bitcoin miners from across the world, the BTC network is expected to increasingly grow stronger as it supports the thriving community,” Cointelegraph reports. “It is estimated that the remaining 2 million BTC (out of the total supply of 21 million) will be eventually mined roughly by the year 2140 owing to factors including halving.”
Greed is Good Again
Followers of the Bitcoin sentiment will be happy to note that the coin hit the ‘greed’ sentiment last week for the first time in 2022.
“After gaining nearly 30% since March 14, Bitcoin has managed to cling to its yearly opening price as support, this previously marking the resistance ceiling of its trading range for throughout 2022,” Cointelegraph says.
Unfortunately, that didn’t last too long as the market pulled back late last week. Not to worry, though. As Bitcoin 2022 starts, with its all-star line-up of 450 speakers including MicroStrategy Chairman and CEO Michael Saylor, Cathie Wood, Founder and CEO of Ark, and a host of celebrities and athletes, the more than 35,000 attendees expected will give BTC a whopping vote of support.
Joyce Pavia Hanson