Bitcoin is only $500 away from five-digit levels. So, what might affect Bitcoin price this week?
Stocks and Petrol
Traditional markets made a tumultuous start this week. When protests in the US combined with President Donald Trump’s response to China against Hong Kong, anxiety has increased in already panic exchanges. As a result of this uncertainty, increases in safe harbor assets began to be observed. Gold has increased around $ 50 since May 27. As of writing this news, we can say that Gold has approached its highest level since 2011.
However, there is a decrease in oil prices. Andreas Antonopoulos said this could benefit local cryptocurrency miners.
Bitcoin has been gradually leaving macro movements in recent weeks, so it can be said that its potential to monitor the gold of the leading cryptocurrency continues. According to the data, Bitcoin only generated about 50 percent return in the second quarter.
Incoming Double Difficulty Setting
Even if everything is equal, Bitcoin will still face a downside difficulty adjustment over the next three days. Automatic adjustments, one of the most important features of the Bitcoin network, provide incentives for miners to participate in transaction verification. Bitcoin has had no downside correction twice in a row since the bear market in December 2018.
Unlike the difficulty, the hash rate has picked up this week, approaching about 95 quintillion hashes per second. The correction may advance this upward trend in the short term.
Miner Sales Decreased
With the halving last month, miners’ revenues decreased by 50 percent. Miners had to sell more BTC than they earned for a while. This trend has disappeared in the past 10 days and miner sales have declined.
The decline in the desire to sell BTC shares overlaps with consumer activity. Accumulators’ withdrawal rates have reached the highest level since December 2018. Also, 60 percent of the Bitcoin supply was not moved within a year or more, which is an important consideration when fluctuations are considered.
However, whether the withdrawals from the stock market is a harbinger of a bull run are among the topics discussed.
CME Bitcoin futures started the week with a slight difference after Friday’s closing. The stenosis in question reduces the possibility of BTC making a sudden move to close the scissors.
Bitcoin is acting on forecasts according to the creator of the stock-flow price model, taking part in the focus price point of $ 9,500.