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Bitcoin in sideways trend: This is how it is with the big altcoins – 08/31/21

Bitcoin moved up and down in the past week, but basically moved sideways. Some of the big altcoins can continue to perform better. From Gerd Weger

A possible exit of the US Federal Reserve from the ultra-loose monetary policy is seen as a possible trigger for a price fall on the stock exchanges. Bitcoin is also considered to benefit from unrestrained money printing and has established itself as an alternative investment. Therefore, the Bitcoin exchange rate could well be affected by a swing in monetary policy. However, the price should not be affected in the long term, as the sudden rise in inflation and the high negative real interest rate show its justification for existence as a globally accessible and non-inflationable store of value.

At last week’s central bank conference, which took place virtually due to Corona, Fed Chairman Powell did not yet announce an interest rate hike, so the major interest rate turnaround will be postponed further. However, he has indicated that the Fed will cut back bond purchases, which currently have a monthly volume of $ 120 billion. A specification could be made at one of the next Fed interest rate meeting, possibly as early as September.

This possible gentle turnaround in interest rates should only cause short-term irritation with Bitcoin. Especially since the Bitcoin demand could rise again sharply in autumn: A possible approval of Bitcoin ETFs (see message above left) would trigger a new surge in demand. Due to the limited supply, this could only be solved through significant price increases for Bitcoin.

Negative reports from China should not be able to permanently disrupt this development either. The Chinese central bank does not attribute any real value to Bitcoin and other cryptocurrencies and sees them as pure investment speculations. In addition, the central bank is said to have asked several banks not to participate in transactions with such virtual currencies. The market for cryptocurrencies is also broadly based on increasingly solid foundations: almost all of the top 100 coins now have a valuation of more than a billion dollars. The capitalization of the entire crypto market recently exceeded the two trillion dollar mark again.

News from ICP and OMG

Trading in Internet Computer (ICP) started on May 10th on several large crypto exchanges just before the slump in the crypto market. After opening prices around $ 600, the coin went down to $ 27. The price has increased significantly since the end of July and is already trading around $ 70 again. Internet Computer competes against monopoly on the Internet. The aim is nothing less than to replace the conventional Internet or at least to expand it significantly. For this purpose, the currently existing Internet is to be combined with the functionality of the next generation of smart contracts. The aim is to create a decentralized computer – a claim that Ethereum has previously claimed for itself.

OMG Network (OMG) has made a price jump of over 50 percent since it was launched three weeks ago and still has potential.

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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