By the end of 2020, the price of bitcoin should reach $ 15-16,000, Vijay Aiyar, head of the business development unit at the Luno crypto exchange, said on the air of CNBC. In his opinion, most traders consider the renewed BTC rally the beginning of a new long-term trend.
Recall that Bitcoin began to strengthen in the early days of January. In parallel with bitcoin, gold also rose in price, a troy ounce of this metal exceeded $ 1600. The correlation of gold prices and BTC during this period reached its maximum over the past four years. The second phase of Bitcoin strengthening began this week, the coin is now very close to $ 9000.
The Cobinhood cryptocurrency exchange announced the termination of operations for a whole month, ostensibly to conduct an audit of balance sheets. “The Cobinhood exchange closes to audit the balances of all accounts from January 10 to February 9, 2020. She will resume work on February 10. After that, Cobinhood users will be able to access all of their funds. Please do not make deposits - this may lead to irreversible losses”. Last May, users suspected Cobinhood in an exit scam. Shortly before this, the parent company of the exchange announced the beginning of the liquidation procedure, and this happened a month after the completion of the ICO.
The US state of Illinois has joined the ranks of other US entities that recognize the validity of smart contracts and blockchain entries. The blockchain law entered into force on January 1, opening up many potential new legal scenarios for blockchain-based contracts. These contracts can now be used as evidence in court, as well as being recognized as an alternative to paper documents and are legally exempted from local taxation. “A smart contract, record or signature cannot be deprived of legal force or the possibility of enforcement only because the blockchain was used to create, store or verify a smart contract, record or signature” the law says. In addition to recognizing the validity of blockchain entries, the law also protects the industry from local government interference. This means that cities cannot introduce taxes and introduce regulation.
As we wrote in a recent analysis, Bitcoin began to rise last week. While the highest levels lasted only a few hours, analysts began to pay attention to the likelihood that Bitcoin would create support closer to $ 8'000 or higher. An analyst, Michael van de Poppe, pointed out that there is a price gap in the CME bitcoin futures market - around the $ 7,960 price mark, and bitcoin has historically sought to fill such gaps. “This reversal would be the best option + overcoming the gap on the CME" he summed up in his last post on Twitter. Continuing, Van de Poppe suggested that a potential rebound could send BTC / USD well above Wednesday’s peak: A breakthrough will open the way to $ 9,500 ($ 11,000 for $ 9,500 is the same as $ 6,000 for short positions ) Nevertheless, the potential for decline remained, it is also possible to return to recent lows of $ 6,400.
Last Friday, January 10, bitcoin dropped below $ 8,000 and on some trading floors tested the lows at $ 7,719. The last time, at about the same level, the first cryptocurrency was on January 7th. The biggest spurt this week occurred on Wednesday, when Bitcoin tested values above $ 8,300. Support returned on Friday evening, and already on Saturday night, January 11, BTC grew to $ 8029. Bitcoin's market capitalization now stands at just over $ 146,267 billion. The coin was able to strengthen due to increased support from institutional capital that entered the Bitcoin futures market. According to the Skew service, large players took advantage of the fall in BTC value and invested about $ 20 billion in bitcoin futures. Moreover, analysts note that trading volumes continue to add, so there is a high probability of a quick return of previously lost positions.