Bitcoin ends the day on August 9 at $46,365.40, extending the crazy growth of the weekend. In yesterday’s session, the bitcoin price rose 5.87% taking altcoins in its wake. Ether (+6.83), BNB (4.94%), DOGE (5.79%), and ICP (+15%) all performed well intraday.
Bitcoin’s price is rising under inflationary pressure. It’s no longer a secret; the market’s leading crypto is considered an inflation hedge. Every time the inflationary threat to the global economy looms, bitcoin rises in the stock market.
BTC is poised to resume its bullish levels from earlier this year as the on-chain data is very favorable for a rise. First, analyst Marcel Pechmann pointed out in his article on Cointelegraph that tokens held for a period of a year or more have not moved on the BTC network. He goes on to say that the market volatility indicator “Fear and Greed Index” has moved from “moderate” to “greed”.
The cryptocurrency legislation in Joe Biden’s infrastructure plan was seen as an event that would damage the recent market boom. Much to the delight of crypto-enthusiasts, the crypto bill has stalled in the Senate even after being reworked. The first version stated that all entities involved in the crypto universe would have to report their tax data to the IRS.
The crypto law should not be a drag on innovation in the sector. Lummis one of the senators behind the crypto law made this clear himself:
‘Going forward, this fall, we’re going to have to be much more proactive in defining terms in this space so that people can continue to innovate.
The amended version was a bit vague on the term “intermediary”. A “broker or intermediary” is defined as: any person who (for a fee) is responsible for regularly providing any service that performs transfers of digital assets on behalf of another person. Crypto advocates believe that the vague definition of the word broker would leave the field open to multiple interpretations that could hinder innovation in the sector.
Given the blocking of the crypto law coupled with the favorable On-Chain data, the price of bitcoin is expected to continue its bullish movement. Yesterday, BTC’s RSI stood at 71.45. In addition, the price of bitcoin is above the 200-day moving average pointing to $45,095.
The bitcoin futures and margin market supports the current trend in bitcoin. According to the analyst, Marcel Pechman:
Bitfinex’s margin and derivative futures markets indicate a lack of bear confidence just as bitcoin is breaking through $45,000 resistance. This suggests that the recent 20% rally is well-founded and not just a bounce or the result of heavy liquidations.