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Bitcoin ended the week by consolidating in the range of $7650-$7850. The cryptocurrency opened the day at $7700 and reached the peak at $7857, before stabilizing around $7750 levels — making it a least volatile day in past two weeks. At the time of writing Bitcoin is trading at $7808 a piece, posting a market cap of $130 billion.
Bitcoin showed some strong resilience this week by sharply bouncing from $5500 to $8080 to register an all time high. A lot of factors contributed to the rise of world’s largest cryptocurrency unprecedented rally; CME group’s announcement, Square beta testing Bitcoin, and successful completion of the first off-chain atomic swap are to name a few.
According to Goldman Sachs, Bitcoin will continue to consolidate below $8000 short term before rising once again. But Bitcoin is Bitcoin and will always be unpredictable.
However, it is highly unlikely that the cryptocurrency will now go below $7000. If the bulls get back in the game, we could see a rally that may test $8500 and $8800 levels.
It’d be interesting to see how the markets play out next week.
Top Stories from the Crypto World
1. Chinese Bitcoin miners are looking to relocate
An increasing number of Chinese miners are looking at other jurisdictions to operate amid growing uncertainty regarding the future of China’s mining industry. Although the Chinese government has not indicated that it will extend its cryptocurrency crackdown to target miners, many are making plans to base their operations elsewhere.
Chinese miner, Akira Cui, recently told the South China Morning Post that many miners “have already paid visit to Vietnam, Laos, Thailand, Russia and the US, negotiating electricity prices with local authorities and buying sites for future use.”
A good thing to know: Last week, a document indicated that the state-owned power company in China’s Sichuan province would be mounting a crackdown on Bitcoin mining. It could be one of the reasons why miners are exploring international options.
2. European central bank is considering Bitcoin regulation
According to Reuters, the European Central Bank (ECB) is considering regulating the use of digital currencies. Governing council member Ewald Nowotny said:
“We’re asking ourselves if legislators or central banks should intervene, as happened in China where they banned (the use of cryptocurrencies) because they consider them fraudulent.”
3. Australian government awards grant of $8 million to blockchain energy project
Australian-based solar startup Power Ledger, among others, is to receive AU$8.25 million in funding from the Australian government for a cutting edge project using the blockchain.
The project is testing the blockchain to determine how cities can use the technology and data analytics to integrate distributed energy and water systems. Brad Pettitt, Mayor of the City of Fremantle, said:
“This collaboration between existing infrastructure, renewable energy and innovative technology fits with our One Planet zero carbon energy target and will help us to secure the ongoing sustainability of essential services for communities that live here.”