Bitcoin has once again proven its resilience as it recovers from the negative impact of the SEC’s continued crackdown on the cryptocurrency industry. Despite the challenges, Bitcoin has managed to maintain its $26,000 level, which is crucial for its ongoing uptrend.
Altcoin Sherpa, a renowned crypto analyst, suggests that Bitcoin’s bottom could be at $23,000 to $24,000 levels. However, he advises investors to be patient and wait for the market to find consolidation before making any investment decisions.
Justin Bennet, another crypto analyst, recommends that traders should look out for potential ranging price action between $25,200 and $26,500, with the key support area for the coming week at $25,200. He encourages traders to exercise caution and wait for a confirmed deviation below the $25,200 support level before making any moves.
Meanwhile, Bitcoin is steadily gaining attention as a sound store of value and alternative to traditional investments. Institutional adoption and increasing acceptance as a legal payment method are contributing to its mainstream adoption.
Despite criticism of Bitcoin mining’s energy consumption, there are benefits to consider. Mining can help stabilize electricity grids and reduce the cost of power for consumers. Furthermore, with the mining process becoming more competitive, miners are exploring more advanced hardware and software and renewable energy sources.
Several countries are legalizing Bitcoin as a payment method, but central bank digital currencies (CBDCs) may have a greater chance of mainstream adoption, given their potential for integration with existing financial systems and regulatory frameworks. Nevertheless, Bitcoin is gradually progressing toward mainstream adoption as a long-term investment tool.
In recent headlines, FTX has been barred by a US judge from joining confidential mediation sessions between digital currency lender Genesis Global Holdco and its parent company, Digital Currency Group. FTX claimed Genesis owed it $3.9bn as part of efforts to recoup value for creditors, but Genesis denied it owed FTX anything. The judge granted Genesis and DCG a further 100 days to arrange a revised payout proposal.
In conclusion, Bitcoin’s resilience amid the SEC’s ongoing crackdown is a positive sign for crypto investors. While caution is necessary, the up-and-coming cryptocurrency looks set to continue its steady growth. For investors, it’s worth considering Bitcoin’s potential as a sound store of value and alternative to traditional investments alongside CBDCs, for diversity in a financial portfolio.
