Tuesday, May 26, 2020

10 Reasons to sell your Bitcoin above $10000, right now

The Takeaway:

Bitcoin price is sailing the ship of downtrends. The cryptocurrency has consecutively failed for the fourth time to cross the resistance bar. While people may hope for a bullish trend, bitcoin downward pattern could persist for an extended period as the crypto bears roar. In this article, we have curated a list of the factors that can prove to be the reason for the bearish run. 

ADVERTISEMENTKillerlaunch domains

Bitcoin, the crypto king, might have entered the red zone. The digital coin, unable to conquer the strong resistance in the path of price hike, is upholding a bearish pattern and continues to face a lot of criticism and opposition. Along with it, the investors stand on a shaking ground, failing to decide whether or not to sustain their faith in Bitcoin. 

If you are a hodler holding bitcoins in your possession, be on guard, as few ongoing trends suggest a plunging bitcoin price, very soon. 

 

1. Australia might force Bitcoin users to hand over their private keys.

For all crypto patrons, Australia has released an incredulously alarming statement that would definitely quake your smart investment brains. The country might force Bitcoin users to hand over the private keys of their crypto wallets to avoid jail. Australia has passed The Telecommunications and Other Legislation Amendment Bill 2018, which cites the compulsion of providing passwords of any devices when you enter the borders of the country, or else you go behind bars.  

 

2. Bakkt’s launch can dip Bitcoin prices.

Bakkt, the bitcoin futures contract platform is set to come into play in just nine days. However, this launch can prove to be a sword for wounding Bitcoin pricings. Firstly, above all, the manipulations are parallel to the launch, ready to board the ship of dipping bitcoin prices. Wall Street Institutions hold immense power to play big games where investors can suffer more than they can afford. Secondly, the ascend of institutional participation in Bakkt can undoubtedly turn out to be fatal for the decentralization of the crypto coin. Another and the most considerable fact is the history of futures that ruminate a sharp dip in the asset’s valuation. Gold prices followed a downward trend for over three years post the initiation of the gold futures contract in 1974. The announcement of Bakkt’s launch in 2018 doomed the bitcoin price to a certain level; thus, we can certainly assume what the execution of the platform will hold for the investors. 

 

3. China is capable of 51% Attack on Bitcoin blockchain.

The billion-dollar whale that invaded the crypto industry last week commenced a severe wave of concern among people. Anyone who holds such a massive amount is possibly capable of executing a 51% attack on bitcoin’s blockchain. While we may be doubtful about others, but the Chinese government assuredly holds the ability to perform such an act. China possesses most of the crypto mining sector. Over 80% of the cryptocurrency is mined in the nation. Bitmain, the ASIC chip designing firm in Beijing, alone acquires about 40% of the network ownership. The China authorities can target the firm and firmly carry out the 51% attack. 

Bitcoin is an ideal opposition to China’s centralized governing policy. Weakening or destroying the cryptocurrency will bring nothing less than a victory to the government. Also, attacking Bitcoin can be a solid move to inflict law enforcement and reinstate control over citizen’s investments. China can unquestionably disrupt the non-Chinese mining pools and sprout their proportion of hash power, exerting more influence over bitcoin. 

 

4. Fake BTC searches might evoke a virtual surge and an eventual slump.

BTC searches have surged to an all-time high. The value is seen to have accelerated to a maximum level of 100 in just a minimum of three days from 29th to August 31. However, this rise is speculated to be hype. The significant spike in the searches reportedly came from Romania, hinting to the possibility of manipulatives moves. Any influence on the bitcoin pricing through these increased search rates are highly assumed to be temporary and might not sustain for an extended duration. 

Check Here: https://trends.google.com/trends/explore?q=BTC,bitcoin

 

5. Tether minting hints to an unsustainable Bitcoin hype.

Manipulations must not strike the crypto world; however, they seem to be a significant factor defining the cryptocurrency prices. Tether, the dollar-pegged crypto coin supposedly portrays a negative sentiment. According to the reports, the stable currency is believed to be minted to manipulate the bitcoin pricing. On September 10, a whale alert unveiled the minting of $20 million worth USDT at Tether treasury and consecutively, on September 11, $300 million USDT was minted.

Tether, along with Bitfinex, is accused of market manipulation for injecting the crypto markets with fake money and hiking the digital coin’s valuation in 2017. It has been discovered that minting of Tether is clocked as per market downtrends which eventually gives a virtual boost to the crypto prices. 

 

6. The US can ban Bitcoin anytime.

The US authorities and cryptocurrencies’ maintenance of an antagonistic relationship is commendable. On September 11, the US government plan of banning E-cigarettes gained light, but what attracted the attention of Crypto enthusiasts was the statement of Thomas Lee. The co-founder of FSInsight and Fundstart tweeted that after prohibiting vaping in the nation; the Trump administration can turn its antenna towards banning Bitcoin. E-cigarettes industry in the US holds possession of over a billion dollars. The quick decision of forbidding vape smoking directly signifies the ability of the authorities to slaughter the sprouting markets. Furthermore, Donal Trump’s skeptic behavior towards bitcoin is no surprise. Priorly, he has openly framed his concerns or dislikes towards the digital coin as it is found to be contributing to the illegal acts of drug trading. 

 

7. Libra ban is a bane for Bitcoin.

Libra, the most controversial cryptocurrency is facing every possible hurdle for its launch. Where the US regulators have halted the development of Facebook’s coin, the France government declared to ban its developments in Europe. Libra is not yet evolved as a reality. Such strict regulations over the unimplemented crypto can pave the way of danger for every other cryptocurrency’s survival, majorly Bitcoin.

 

8. ECB’s lower loan rates suggest a dead cat bounce.

The European Central Bank, on September 12 announced the cut in deposit rates to a record low -0.5% from -0.4% to restart the bond purchases of 20 billion euros a month from November. Along with it, the bank has also proffered relaxations over long term loans. The low-interest loans can prove to increase the investments in the crypto sector, which can ultimately hike the prices of digital coins, but, it is theorized to be a dead cat bounce and not a lasting upsurge. 

 

9. Long Bearish run for Bitcoin: Crypto Analysts.

Bitcoin is maintaining a downward trend. Recently, it failed to overcome the resistance for the fourth time. The critics hold steady of their critical opinions towards the crypto coin. Besides them, the crypto analysts have shed light on the predictions that bitcoin might not rise high in the near future. The cryptocurrency is assumed to travel on the road of the bearish outlook for a longer time than expected. 

 

10. Bitcoin dip is imminent with the nearing end of the US-China trade war.

The US-China trade war became apparent from 2018. Both nations have contributed to mounting the war by imposing tariffs on each other’s goods. The longing war, though bad for the traditional economy, ended up being a fuel for the bitcoin price hike. People shifted their investments from the fiat currency to the digital cash due to the falling rate of the USD and Yuan. However, yesterday, China performed a big move by exempting taxes from 16 types of US products. In response, Trump signaled to end the trade war rather than carrying out the interim deals. With this, the Asian stock markets saw a rise. But, for Bitcoin, it may turn out to be an unfavorable call. With the end of the war between nations, the economy may attain a better outlook with uprising values of the fiat currencies. Investors may move to invest in the government-backed cash rather than bitcoin.

 

Bonus: CipherTrace reports crypto thefts.

Scammers have established their own niche in the crypto world. As reported by CipherTrace, cyber crooks have netted $4.3 billion worth of cryptocurrencies from exchanges, users, and investors up till now in 2019. Even the most secure trade platforms are unable to secure themselves from hackers. Besides this, you never know when North Korea might swipe your possessions from under your nose. 

ADVERTISEMENTBtrz jokerbtc 728x90 en

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Ramon AnderSon
Ramon AnderSon
Ramon is a senior market research analyst who is very passionate about bitcoin. He has a degree in Applied Science from Assumption College, Worcester.

3 Comments

  1. You are missing one crucial.
    BTC mining complexity’s doubling is expected on May next year, prices don’t usually get new heights before this happens.

  2. The first news, the one that ends up in prison in Australia if you don’t hand over your private keys to the government, where did you read it? What is the source? Thanks.

Leave A Reply

Please enter your comment!
Please enter your name here