The Magazine for Asian Investors
Bitcoin (BTC) has made an impressive start to the new month after the price managed to close above $67,000 for the first time in history.
But what will happen next?
This is expected to happen next week
- October 2021 turned out to be the best month since 2020.
The bitcoin price has reached $67,000 for the first time in 13 years, the highest level in history. At the moment, the bitcoin price can still hold above the $61,000 mark.
The bitcoin price closed at $67,000 at the end of October, and analysts expect at least $98,000 in November.
- The difficulty level increases for the 8th time in a row
The difficulty level was positively increased for the 8th year in a row. This shows that competition in mining is increasing to compensate for the losses incurred.
The difficulty has risen to 21.89 trillion hash this week. This is only 3 trillion below the original all-time high and shows that the Bitcoin network is in good shape and trending upwards.
- Investors collect more
Last September was a golden opportunity for Bitcoin buyers as the price corrected downward.
Long-term Bitcoin holders are not worried about the price correction. They use this opportunity to collect more coins. This trend has not changed.
- The number of Bitcoins on the exchanges fell to the lowest point
Glassnode, a network analytics company, has found that the number of BTC on exchanges worldwide has fallen to its lowest level in three years. This has not been the case since Bitcoin traded at $3,100 in December 2018.
Currently, only 2.47 million BTC are held by exchanges. Unlike in 2020, when the number of bitcoin exchanges on the exchange reached 3.1 million BTC.
- Fed could have less impact on crypto markets
This week’s upcoming Fed announcements may have less impact on the market. The Fed plans to taper the QE program from November.
That came after inflation skyrocketed around the world, as the Fed chairman acknowledges. We will probably see the inflation crisis continue until 2022.
As more and more money flows into bitcoin investment products and the newly launched futures funds (ETFs), this reflects the continued growth in demand.