While Bitcoin has remained up above $10,000 for some time now the major coin has been struggling to push towards the $12,000, $13,000 and higher region. Many are hopeful that Bitcoin can break these markers and push towards a new all time high and above $20,000 before the year is out.
However, for this to take effect, the coin still has to cross back above $11,000 having hit that mark last week, but then falling a little behind it again. This week is an interesting one for Bitcoin as there are a number of factors that could impact the growth of the market.
It is not only the Bitcoin and cryptocurrency space that could impact the price this week, it is the traditional space which has not only been rocked by Covid-19, but is now facing allegations of mass money laundering.
And still, the stock market is still feeling the weight of the Covid-19 induced panic as it becomes a less desirable investment opportunity and Bitcoin shines brighter. Part of this shining is that Bitcoin has also made some advancements in its fundamentals that are worth looking at.
Banks under pressure, Stocks down
Daming allegations have come forward from the Financial Crimes Enforcement Network (FinCEN), dubbed the FinCEN Files, that found its way to investigative journalists throughout the world this month.
It has been noted that large-scale money laundering ahs been happening at major banks, such as HSBC, which continued allowing funds to move through its accounts despite being notified of their criminal origins. The bank’s shares were down to 25-year lows on Monday as a result.
There are also claims of powerful Russians using banks in the United Kingdom to avoid sanctions and other such crimes. The irony is of course that banks have often signalled their displeasure with Bitcoin due to it being a tool for illicit activities.
At the same time in the beginning of the week stocks are also feeling the pressure, with the FinCEN files also playing their part in this.
Trading in Asia opened on a weaker note seeing Hong Kong Hang Seng Index down 1.5% — driven by HSBC shares hitting their lowest since 1995. A similar picture came from Europe, with the Stoxx Europe 600 down 1.6%. In the United States prior to the opening bell, S&P 500 futures were down 1%.
The U.S. faces a mixed bag of woes as politicians struggle to agree on a fresh coronavirus stimulus package and elections draw nearer.
Bitcoin looking good
While the traditional financial space continues to take hits, bitcoin — while still under $11,000 — is showing signs of good fundamentals. The hash rate of the coin is topping all time highs as it increased 11.35% at the latest automatic readjustment on Sunday.
A popular theory suggests that price bullishness follows fundamentals, and miners’ belief in Bitcoin’s long-term profitability is now clear to see.