Bitcoin dropped from the $60K level to trade near the $50K threshold this week. The decline was sparked by the prospect of faster-than-expected economic growth in the US.
A rebound in employment rates has boosted demand for the dollar and longer-dated Treasury yields. As the US dollar index climbed higher, some traders opted out of the crypto markets to seek cash and other less risky assets.
According to Robbie Liu of OKEx, many retail investors are now confident that the $50,000-area is the bottom for BTC.
“Retail investors have seemingly been trying to catch the bottom around the past two days while institutions generally want to de-risk. 50,000 USDT is now becoming a key level to watch,” Mr. Liu noted.
As a result, the king coin saw renewed buying interest from retail investors, leading to the price surging more than 7% on Friday. At the time of writing, the BTCUSD pair is trading for $53,854.
BTCUSD Chart By TradingView
Microstrategy CEO: There’s Zero Chance of BTC Being Replaced
Despite the US dollar’s recent upswing sapping demand from the bitcoin market, many retail investors still want to hold the digital coin as it shows great promise of serving as an inflation hedge.
However, the Bitcoin network is far behind other emerging projects in the crypto space, which have superior tech. Moreover, Bitcoin is plagued with flaws such as its low 7 transactions per second speed, lack of complete anonymity in transactions, and BTC’s inability to be programmed.
The emergence of faster, cheaper, and technically superior blockchains raises questions over whether the market will maintain its BTC preference. Although Bitcoin is way behind the competition when it comes to tech, Michael Saylor of Microstrategy says that there is zero chance of the digital asset being replaced.
Speaking in an interview with the Paul Barren Network on Youtube, the well-known bitcoin bull asserted that BTC is a trillion-dollar digital monetary network that has barely begun to fulfill its potential. Saylor predicted that when it does, the network would be “the most successful thing you’ve ever seen in your life.”
The Future is Bright For Bitcoin
Saylor also believes that the growth rate of BTC will only accelerate as investors continue to seek safe-haven assets amid mounting uncertainty in the global economy.
The leading digital currency’s appeal will also be buoyed by the increased institutional adoption from the likes of Paypal, Microstrategy, and Square Inc.