A fresh set of obstacles and supporters present themselves for Bitcoin as the digital currency market develops. As of Tuesday, the price of Bitcoin is $34,901, a slight decrease of 0.25%.
Due to limits on employees possessing digital assets, the US Securities and Exchange Commission is facing a number of challenges of its own, chief among them being the challenge of finding bitcoin expertise to fill open positions. In the meantime, there is a substantial backlog of transactions on the Bitcoin network, which is driving up fees by an astounding 4,000%.
Despite these changes, prominent investor Cathie Wood continues to stand by Bitcoin, highlighting its benefits over more conventional assets like gold and cash, particularly in the event of a deflationary economic environment.
Together, these elements create a complicated environment that will influence Bitcoin’s short-term price trend.
The SEC’s Crypto Dilemma: Recruiting Obstacles Despite Staff Restriction
A study detailing the difficulties the U.S. Securities and Exchange Commission (SEC) has had hiring cryptocurrency experts has been released by the Office of Inspector General of the SEC. According to the report, there is a dearth of competent applicants, fierce competition from the private sector, and applicants’ hesitation to sell their bitcoin holdings because SEC regulations forbid such ownership.
Simultaneously, the SEC has intensified its enforcement efforts in the cryptocurrency domain, bringing legal action against individuals and corporations, such as Do Kwon and Justin Sun, in addition to organizations like Coinbase, Gemini, Genesis, and Binance.
The SEC’s inability to obtain industry knowledge may have an impact on its ability to successfully regulate the cryptocurrency market, which could affect the price of Bitcoin.
Blockchain bottleneck for Bitcoin: transaction backlog and fee increase
Transaction backlogs and costs are significantly rising on Bitcoin as of November 2023. The Bitcoin mempool now contains almost 157,000 unconfirmed transactions since September 15, when a period of decreased activity ended. The fees for high-priority transactions have increased to $3.38.
The revival of ordinary inscriptions, which handled around 700,000 transactions on November 4—one of Bitcoin’s busiest days—is mostly responsible for this spike in congestion. The mempool backlog was made worse and transaction fees went up with the ensuing flood of over 800,000 transactions in just two days.
Notably, the average cost for high-priority transactions has increased dramatically to $3.71, or 4,125%, since October 3. The increased activity and associated fee increases highlight the critical problems with network congestion and scalability in the Bitcoin ecosystem, which could have an impact on the price of Bitcoin.
Cathie Wood’s Audacious Position: Preferring Bitcoin During a Deflationary Future Compared to Gold and Cash
In an interview with Bloomberg’s “Merryn Talks Money” podcast, Cathie Wood, the CEO of Ark Investment Management, said that she significantly prefers Bitcoin to traditional assets like cash and gold.
Regarding Bitcoin’s capacity to function as a hedge against inflation and deflation, Wood was adamant that, given the choice, she would make a ten-year investment in it “hands down.”
She emphasized Bitcoin’s digital nature and its potential to attract younger investors. More individuals may feel confident in Bitcoin as an asset as a result of Wood’s optimism about it and her forecast of an approaching period of deflation in the US economy. This could encourage more investment and positively impact the price of the cryptocurrency.
Bitcoin Price Prediction
The present lateral movement in the price of bitcoin is centered around a pivotal level of $34,990, which is of great interest to day traders. The price’s immediate barrier is located at $35,360, a level that has recently experienced a lot of trading activity. If this level is successfully crossed, it may pave the way for a move up towards stronger resistance levels, which are roughly $36,051 and $37,018.
The initial level of support is situated at $34,693 on the downside. If the negative trend continues, $33,281 and $32,481 could provide more support.
With a score of 57, the Relative Strength Index (RSI) is slightly optimistic, indicating a modest bullish bias without going into overbought territory.
The 50-Day Exponential Moving Average (EMA), on the other hand, is at $34,390, which is marginally below the market price and suggests that an uptrend may be imminent.
In the near future, Bitcoin’s chances depend on how stable the $34,693 support level is. In the near future, Bitcoin may challenge the $35,360 resistance level if it maintains a steady hold above this support.
On the other hand, a decline below this support level may indicate a decline, highlighting the significance of placing stop-loss orders in these erratic market circumstances.
