Month: September 2024

Bitcoin has climbed back to $60,000, fueled by anticipation of a Federal Reserve interest rate cut expected next week. Bitcoin’s rally comes as markets prepare for the possibility of a 25-50 basis point rate reduction, a move that many believe could further boost BTC and risk-on investments.

BREAKING: $60,000 #Bitcoin 🚀 pic.twitter.com/pualhxdQOU

— Bitcoin Magazine (@BitcoinMagazine) September 13, 2024

Earlier this summer, Federal Reserve Chair Jerome Powell hinted that a rate cut could come as early as September. Speaking on June 12th, Powell noted that the central bank would consider lowering rates once they were confident inflation was moving back toward their 2% target. This week’s announcement that U.S. inflation has dropped to 2.5%, lower than expectations, has potentially paved the way for such a move.

JUST IN: 🇺🇸 Fed Chair Powell says an interest rate cut could come as soon as September 👀 pic.twitter.com/RuIFqVZqSC

— Bitcoin Magazine (@BitcoinMagazine) July 31, 2024

The Federal Reserve announce its decision this coming Wednesday, September 18, at the next scheduled Federal Open Market Committee (FOMC) meeting. A rate cut could provide additional momentum for Bitcoin, which has already risen more than 125% over the last year.

Just yesterday, the European Central Bank cut its key interest rate by 0.25 percentage points, following the Bank of Canada’s decision to also reduce its policy rate by 25 basis points last week.

Crypto-natives and fans of Detroit rapper Big Sean flocked to the Lager House, just outside of downtown Detroit, for the third stop of the America Loves Crypto Tour. The event provided both an evening of live entertainment and a call to action to get out the crypto vote in the upcoming 2024 elections following previous stops in Arizona and Nevada.

Michigan is considered a battleground state, and the Stand With Crypto Alliance sees the state’s 940,000 bi-partisan Bitcoin and crypto owners — 25,000 of which are Stand With Crypto members — as potentially crucial for the upcoming presidential election. The 2020 election’s margin within Michigan was only about 156,000 voters, which means that crypto voters could well swing the electoral outcomes in 2024.

Local startup founders, university blockchain clubs, former State Representative Ryan Berman (R) and operatives of the Stand With Crypto Alliance took the stage for the third stop on the battleground state roadshow to communicate a simple message: Digital asset owners and entrepreneurs have leverage, and it’s time to make their political voices heard.

The last few years have seen the US Securities and Exchange Commission’s (SEC) inconsistent regulatory actions have a chilling effect on the industry. Adam Zientarski, co-founder of Detroit Ledger Technologies, remarked that he would like to see that change so that “startups can actually be focused on growth and not on moving the company to another country”. On behalf of entrepreneurs in the state, he simply asks regulators to “let them build.”

In an interview with Bitcoin Magazine, former Michigan State representative and Attorney General candidate Ryan Berman echoed similar thoughts on the role of regulation.

“You can’t predict what is going to happen in this technology space, but we want to make sure people can innovate and have the tools necessary without government blocking them,” Berrman said. “Detroit has been on a rebound over the last couple of decades. It would be beneficial and put Michigan on the map to say ‘Hey, we want to welcome these types of companies, we want innovation.’”

Berrman went on to emphasize the economic importance of fostering innovation in the state:

“Here, at this event, we’ve heard from these entrepreneurs from the University of Michigan, [which] has half of their student body from out of state. The other half is in-state kids from our big schools – currently, our students leave the state looking for jobs. What can we do to keep our students here? Technology is at the forefront.

Crypto Education: Not Just For Elected Officials

Technological innovation took the driver’s seat during the America Loves Crypto’s stop in The Motor City, and what stuck out was the cultural interest in Bitcoin and crypto co-mingled with the pride many Detroiters, in particular college students, have for their state of residence. President of the University of Michigan Blockchain Club Evan Solomon received raucous applause from the crowd when shouting out his alma mater.

College students and educational institutions, a particular point of pride for Michigan, seem to be paying strong attention to Bitcoin and crypto during this election season. Speaking with Bitcoin Magazine, Solomon proudly shared that his on-campus club has received support from the prestigious Ross School of Business to host an event with 25 visiting organizations in attendance.

Yet, Solomon also remarked that clear regulation is “the single most important thing” when it comes to fostering talent and strengthening the industry in the state. When students consider what careers or companies to pursue post-college, the stigma of over-regulation is a major factor. But the tides are turning and Solmon is optimistic following a 2023 meeting with U.S. Senator Gary Peters (D), saying: “I thought the reception was great, they wanted to hear us out, and they wanted to hear about the applications.”

Code And Law: Constitutional Battles for Developers

Bitcoin and crypto are in the State of Michigan not just a matter of revenue and economic development, but of important constitutional considerations for more than 940,000 Michigan crypto owners.

Berman, who has a background in law, explained that overlapping First, Second and Fourth Amendment considerations have informed his perspective on crypto. Specifically, he argued that 3D printing files for creating firearms are as much a Second Amendment constitutional right as they are issues of free speech and privacy, and he sees overlap with cryptocurrency in that regard now that developers of open source privacy tools are also being prosecuted.

“Freedom of speech is what our Founding Fathers were all about. Publishing a manual can be bad if somebody uses it for a bad purpose, but [in the case of 3D-printed guns] there’s plenty of legitimate purposes as well. But even if there aren’t any, it doesn’t matter what the purpose is, it’s all about freedom, it’s all about the First Amendment. I’m totally an advocate for not only the Second and First Amendments, but the Fourth Amendment in particular when you’re talking about encrypted communications.”

America Loves Crypto continues its road show this week and the following in Milwaukee, Philadelphia and Washington D.C. Attendees can RSVP for these free events where they will be able to register to vote while connecting with like-minded folks ahead of election day this November.

Bitcoin’s recent price movements have caused concern among investors about what might come next. However, by looking at key indicators such as the 200-week moving average, Pi Cycle Top Indicator, and the Golden Ratio Multiplier, we can gain insights into potential support and resistance levels for Bitcoin.

Leaning Bearish?

In recent weeks, Bitcoin’s price has fluctuated, dipping as low as $53,000 before stabilizing in the middle of our newly formed $50,000 to $60,000 range. If this bearish price action is to continue and price breaks to lower lows the 200-week moving average heatmap (blue line), a historically critical support level, is currently close to $39,000 but fast approaching $40,000 (white line). This round psychological level also aligns with the Bitcoin Investor Tool (green line), which has also converged with the 200-week moving average, could serve as potential downside targets.

Figure 1: Converging levels of support at $40,000 if bearish price action continues.

Nearby Targets

Above current price there are several important levels closer to the current price that investors need to keep an eye on. The Pi Cycle Top Indicator (upper orange line) suggests a crucial resistance level around $62,000, based on the 111-day moving average. The Golden Ratio Multiplier (lower orange line) indicates that the 350-day moving average, currently around $53,000, has been a solid level of support during this market cycle, especially as this is close to the technical $52,000 support and significant psychological support of $50,000.

Figure 2: Nearby support between $53,000 and $50,000, with immediate resistance between $60,000 and $62,000.

More Chop?

In the short term, Bitcoin could very well continue ranging between the low $50,000 region and the $60,000 resistance, similar to the range we had formed between $70,000 and $60,000 that led to fairly stagnant price action for a majority of 2024. Despite recent downturns, Bitcoin’s long-term outlook is still promising. In the past, Bitcoin has experienced similar periods of fluctuating prices before eventually reaching new highs. However, this process can take some time, potentially weeks or even months, before a sustainable trend reversal occurs following periods of low volatility.

Figure 3: Monthly volatility is rapidly decreasing, potentially as BTC finds a new range between $50,000 and $60,000. View Live Chart 🔍

Conclusion

For long-term investors, it’s important to remain calm and not be swayed by day-to-day price changes. Over-trading often leads to poor decisions and losses, and the key is to stick to a strategy, whether it involves accumulating at support levels or taking profits at resistance.

Bitcoin’s recent price action has not been ideal, but with some simple technical analysis and a clear understanding of support and resistance levels, investors can prepare and react rather than over overreact to natural market fluctuations.

For a more in-depth look into this topic, check out our recent YouTube video here: Bitcoin Price Action: What to Expect Next

MicroStrategy announced it had purchased 18,300 Bitcoin for $1.11 billion, boosting its total holdings to 244,800 BTC acquired for $9.45 billion.

The business intelligence firm, led by Bitcoin bull Michael Saylor, has been steadily accumulating Bitcoin as part of its corporate strategy since 2020. MicroStrategy’s latest billion-dollar purchase was conducted at an average price of $60,408 per Bitcoin.

According to Saylor, the company has achieved a 17% Bitcoin yield year-to-date, capitalizing on BTC’s appreciation as it continues borrowing fiat at low interest rates to expand its holdings.

At current prices, MicroStrategy’s Bitcoin trove is worth over $15 billion, greatly benefiting shareholders. The company’s stock price has surged in tandem with its Bitcoin accumulation.

Despite rough market conditions in 2024, MicroStrategy continues compounding its Bitcoin position for the long term. The firm treats Bitcoin as a superior treasury asset compared to cash that is subject to inflationary debasement.

MicroStrategy is executing the biggest speculative attack on fiat currency in history by acquiring the hardest money for its treasury. Other public companies are following MicroStrategy’s lead by adopting Bitcoin treasury policies and acquiring Bitcoin exposure on their balance sheets. However, MicroStrategy remains the largest corporate holder of Bitcoin in the world.

By harnessing underutilized capital to capture Bitcoin’s upside, MicroStrategy has moulded itself into an emerging Bitcoin development company that is powering the worldwide adoption of Bitcoin.