Bitcoin bottom – are we there yet? Analysts Discuss Factors Affecting Bitcoin Price

When Bitcoin traded above $60,000, the smartest analysts and financial minds told investors that the price of BTC would never fall from its previous all-time high.

These same individuals also said that $50,000 was a buying opportunity, then said $35,000 was a generational buying opportunity. Subsequently, they also suggested that BTC would never fall below $20,000.

Of course, “now” is a great time to buy the dip, and one might think that buying BTC at $10,000 or less would also be a buy for life. But until now, all the so-called “experts” were quiet and there was nowhere to be seen or heard.

Therefore, investors are left to their own devices and ideas to think about whether or not the bottom is in. Should one be patient and wait for the “fall to $10,000” or is it now time to buy Bitcoin and altcoins?

In general, calling price bottoms is a useless task. What really matters to focus on is whether there are fundamental reasons for choosing or not to invest in Bitcoin.

Sure, the price has changed dramatically, but has the fundamentals of the Bitcoin network and infrastructure around Bitcoin as an asset improved or deteriorated? It is important to zoom in on this data because for investors, this is where one should look for the trust and investment thesis.

This is exactly why Cointelegraph hosts a file Twitter Spaces with Analysts Joe Burnett from Blockware Solutions and Colin Harper from Luxor Mining. Here are some highlights from the conversation.

Stock Markets Will Decide When Bitcoin Price Can “Rise”

According to Blockware Solutions analyst Joe Burnett, the price of bitcoin is heavily influenced by Federal Reserve policy and its impact on stock markets. Burnett said:

“Obviously, the macro environment has a huge impact on the price of bitcoin. Rising CPI inflation has led to a strong Fed since November 2021. High interest rates inevitably cause all assets to fall. Basically interest rates are attractive to financial assets, only flow analysis Essentially discounted cash. And these rising interest rates are an attempt to destroy demand and destroy inflation by the Federal Reserve. It is clearly putting pressure on all risky assets, including bitcoin.”

When asked about an on-chain Bitcoin hash streak indicator that indicates that BTC is down and miners are resigned to confirming that Bitcoin bottom was inside, Burnett said, “I think with all the admiration on the chain type metric, you definitely have to take it with a grain of salt. You can’t look at it in a vacuum and say, ‘Yes, the bottom of Bitcoin is there.’

Burnett said:

“If US stocks hit new lows, I certainly expect Bitcoin to follow. With that being said, I mean, if you look at the fundamentals of Bitcoin itself, I think that small concessions usually define Bitcoin bottoms. The retail-driven index created by Charles Edwards essentially depicts that There is a capitulation for miners this summer.”

Related: Canaan Manager Says Opportunity Exceeds Crisis As Bitcoin Miners Suffer From Shrinking Profits

Synergy between Big Energy and Bitcoin is net positive for BTC

Discussing the growing partnership between large energy providers, oil and gas companies, and industrial scale Bitcoin miners has been a hot topic throughout 2022, and when asked about the direct benefits of this relationship with Bitcoin itself, Colin Harper said:

“I don’t think mining does anything bad or good for bitcoin. I think it’s good for bitcoin in the sense that in the long run it will really enhance the security of the network, decentralize mining and put it like every corner of the world if you have energy producers mining on it. But in terms of doing anything for the price, I think that’s just kind of a broader adoption issue. And in terms of whether people are going to use it day in and day out as a medium of exchange, a store of value and just a general investment.”

“If these companies start drilling for it, it becomes more acceptable. It becomes less stigmatizing. Based on that, I think the oil producer and that person’s policy,” Harper explained.

When asked what mass Bitcoin adoption might look like in the future, in terms of the growth of the mining industry, Harper explained the following:

“It will only be a matter of time before they start incorporating Bitcoin into their stacks. I think when things get interesting in terms of mining as an industry because if you have energy producers and people who own Bitcoin energy mining, it makes it very difficult for people who don’t have These assets eventually turn a profit because you will see the hash rate, which is actually trading in the lag. Ultimately, you can imagine a future where only energy producers and those who have invested with or joined energy producers can make profits from their bitcoin mining.”

Regulation and the growing desire for self-reservation will lead to the growth of the Bitcoin Lightning Network

The two analysts agreed that while it may take a few years, the potential for Bitcoin’s second layer growth is bright. Burnett predicted that “over time, more and more people will learn to demand the final settlement of their bitcoins, which means that more people will keep their private keys.”

According to Burnett:

“If Bitcoin adoption increases by 100x or 1000x, there will be a lot of competition for scarce block space and the on-chain fees will likely go up just because people will demand more settlement, more stability on the base layer. But the space for the block to settle on the base layer is constant.” So a higher chain fee will essentially provide, in my opinion, the liquidity of the Lightning Channel that is already available and open. It will make it more valuable.”

Harper fully agreed and added that, in his view, the Lightning Network “would be the thing that would allow Bitcoin to be used as a medium of exchange around the world and also, as Jack Mallers said, it’s the thing that sort of separates Bitcoin, the parent from Bitcoin, the payment network in a scalable way.” already under development.”

discipline here to listen To the full conversation in the Twitter Space.

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