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4 things to consider when pricing BTC this week

May 18, 2020

Bitcoin (BTC) starts the second week after halving with a hold of $ 9,500, but what factors are weighing on the main cryptocurrency this week?

Basics adapt to halving

At the beginning of a new week Bitcoin has withdrawn from just under $ 10,000 to around $ 9,500, which has historically been a price focus.

After halving Bitcoin’s network hash rate has continued to fall as mining rewards have halved. As a result, the difficulty of the network is now due to a decline, this time around 3% on Tuesday.

4 things to consider when pricing BTC this week
4 things to consider when pricing BTC this week

Bitcoin 7 day average hash rate 1 month chart

One-month graph of the average 7-day bitcoin hash rate. Source: Blockchain

The mining difficulty setting feature is the key to ensuring Bitcoin security and participation in the network.

A new futures gap appears

The area of $ 9,500 means Bitcoin starts the week by filling a gap that has opened between two weekly Bitcoin Futures trading sessions the CME Group.

As indicated Cointelegraph markets early Monday, the gap”, the price difference at the end of one trading session and at the beginning of another, It is currently between $ 9,440 and $ 9,660.

Bitcoin has a tendency to fill such “gaps” with price movements. Last week, a huge gap was closed for several days.

Fed confirms money printing activities

The true extent of the fiduciary chaos continues to be seenThis has been increasingly contrary to Bitcoin since the market crash in March.

On Sunday, CBS News broadcast an interview with Jerome Powell, President of the US Federal Reserve, in which he openly admitted that the central bank “flooded the system with money”.

“Yes. We did it. That’s a different view. We did it,” he said.

When asked where the trillions of dollars came from in addition to the bond purchase, Powell replied:

We print it digitally.

As Cointelegraph reported The diseased Fiat system is a central point for new and existing Bitcoiners when allocating capital to cryptocurrencies. Last week it was hedge fund billionaire Paul Tudor Jones who announced 1-2% of his net worth to BTC.

The reason, he said, was specifically concerns about the inflation of the fiat currency.

..And the macro responds to the Federal Reserve

Other macro factors are a significant increase in the oil price; WTI surpasses $ 30 for the first time in two months.

Traditionally, Bitcoin has less impact from oil volatility, as has been shown, when some futures contracts were negative last month.

Macro assets return for 2020

Returns on macro assets in 2020. Source: Skew

According to Powell’s comments Gold also gained and rose 1.7% in the day.