cryptocurrency

PlanB Justifies a $100,000 Bitcoin (BTC) while Japan asks for Cryptocurrencies Regulation

PlanB Justifies a $100,000 Bitcoin (BTC) while Japan asks for Cryptocurrencies Regulation

Bitcoin (BTC) price fluctuations: what a story! 3-digit Bitcoin, 4-digit Bitcoin, 5-digit Bitcoin… The seasons go by and while we’ve only just found the 5-digit club again, we’re already betting on the 6-digit club.

Bitcoin is against all Odds and even against Traders

The price of Bitcoin has recently crossed the symbolic USD 10,000 threshold and has even made a foray above USD 12,000.

Mr Stock-to-Flow Ratio, I named PlanB, believes that these upward movements indicate that Bitcoin is well on track to reach USD 100,000.

During the week of July 27, 2020, the price of Bitcoin appreciated by nearly 17%, reversing the curve in which it had been for the last 3 years.

However, Skew statistics show that shorts contracts valued at several million dollars are liquidated every day, so many traders would bet against Bitcoin in the short term.

But trader Cantering Clark argues that such a large change is a clear indicator of an uptrend.

Bitcoin and Altcoins are the Pendulum of Cryptos Investors

This new optimism on the BTC markets coincides with another phenomenon observed on the Altcoin markets: the price of alternative cryptomoney has fallen sharply as the price of Bitcoin has risen.

This phenomenon is not new: similar cycles have been observed several times when investors look for safer options, such as Bitcoin, when altcoins are overvalued. When it happens, it’s possible to note a higher bitcoin trading wave in platforms like TopRatedForexBrokers.com. These price movements permit traders to make profit while speculating on a fall or a rise.

For example, the initial craze for DeFi led to a strong appreciation of assets such as Compound (COMP), Yearn Finance (YFI) and Synthetix (SNX).

In the long term, when the price of these tokens begins to rise, investors can then take their profits and invest their funds in other assets.

Bitcoin is still far from having won the guarantee of a new ATH, even if PlanB is taking advantage of this bullish period to re-announce the 100,000 USD. The bulls now have to manage between bullish moments creating positive market sentiment, moments of decompression, moments of suspense when testing the new supports, the risks of symmetry in Bitcoin price fluctuations and, the traumas caused by the falls that can create loopholes that can cause the bears to re-enter the BTC markets.

Japan wants more Regulation for Bitcoin and Cryptomoney

The new head of Japan’s main financial regulator, the Financial Services Agency (FSA), expressed concern about cryptos and said that “the deregulation of Bitcoin” could probably “stimulate speculation”.

Speaking to Reuters, FSA Commissioner Ryozo Himino, who was appointed last month, said his agency “does not expect to take any special measures in favour of cryptos”.

The deregulation of Bitcoin and other cryptosystems will not necessarily promote technical innovation if it only increases speculative trading,” he said.

These comments are a blow to the crypto industry in the country, which has been in poor health this year. Himino has been accused of trying to convince G20 members to impose stricter and more rational regulations for cryptos exchanges during Japan’s presidency of the organisation last year.

Himino also spoke of plans by the Bank of Japan (BoJ) to intensify its research on central bank digital currency (CBDC), saying he “welcomed” the initiative.

However, he added that Tokyo needed to think long and hard about the consequences of such an issue. “Japan needs to think very seriously about whether to issue a CBDC, as there are advantages and disadvantages to doing so,” he said.

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