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BTC Price Prediction 2021: Bitcoin Price May Fall Ahead Of Chinese New Year says analyst

Institutional investors continue to show an increased interest in Bitcoin and are willing to overpay to gain access to CME Bitcoin futures contracts.

Even selling pressure from BTC miners cannot meet the growing demand. As CryptoQuant data shows , unlike in previous years, massive miner sales do not negatively impact the long-term price of BTC.

With the upcoming Chinese New Year, the current sale is likely to continue, according to Lennard Neo, head of research at Stack Funds.

Neo said:

“With the holiday approaching, miners are increasingly selling their positions. It also suggests that the minimum price at which miners can comfortably store BTC has yet to be determined, and we expect this volatility to continue in the coming weeks. ”

The growing interest from institutions and the emergence of DeFi are major drivers of the rise in BTC prices. Ahead of the Chinese New Year, the key support level to watch is now $ 34,000, while the upside is likely to meet resistance at $ 38,000.

The $ 4.9 billion BTC futures that expired on January 29 seem to have had little impact on the market as Robinhood’s trial last week brings more attention to the cryptocurrency industry.

Traditional markets faced a new wave of pressure that resulted in the worst weekly reading for the S&P 500. The Dow, NASDAQ and S&P 500 ended the day in negative numbers, shedding 2.03%, 2.0% and 1.93% respectively.

Altcoins are showing signs of growth

While Bitcoin price struggled to maintain the $ 34,000 level, DOGE broke into the TOP 10 and a number of altcoins showed a bullish breakout.

XRP and Stellar (XLM) are up about 9% in the past 24 hours, while Voyager Token (VGX) has continued to rise, currently up 70% to trade at $ 1.77.

At the time of writing, the total cryptocurrency market capitalization is $ 1.0 trillion, and the Bitcoin dominance rate is 63.6%.

What Is Bitcoin?

Bitcoin is a digital currency that was created in January 2009. It follows the ideas set out in a whitepaper by the mysterious and pseudonymous Satoshi Nakamoto.1

 The identity of the person or persons who created the technology is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and, unlike government-issued currencies, it is operated by a decentralized authority.

Bitcoin is a type of cryptocurrency. There are no physical bitcoins, only balances kept on a public ledger that everyone has transparent access to. All bitcoin transactions are verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity. Despite it not being legal tender, Bitcoin is very popular and has triggered the launch of hundreds of other cryptocurrencies, collectively referred to as altcoins. Bitcoin is commonly abbreviated as “BTC.”

Bitcoin Mining

Bitcoin mining is the process by which bitcoins are released into circulation. Generally, mining requires the solving of computationally difficult puzzles in order to discover a new block, which is added to the blockchain.

Bitcoin mining adds and verifies transaction records across the network. For adding blocks to the blockchain, miners are rewarded with a few bitcoins; the reward is halved every 210,000 blocks. The block reward was 50 new bitcoins in 2009. On May 11th, 2020, the third halving occurred, bringing the reward for each block discovery down to 6.25 bitcoins.4

A variety of hardware can be used to mine bitcoin. However, some yield higher rewards than others. Certain computer chips, called Application-Specific Integrated Circuits (ASIC), and more advanced processing units, like Graphic Processing Units (GPUs), can achieve more rewards. These elaborate mining processors are known as “mining rigs.”

One bitcoin is divisible to eight decimal places (100 millionths of one bitcoin), and this smallest unit is referred to as a Satoshi.5 If necessary, and if the participating miners accept the change, bitcoin could eventually be made divisible to even more decimal places.

CT Forecast (Staff Writer)
CT Forecast (Staff Writer)https://citytelegraph.com/
I trade on Stocks (US) and Crypto. In my spare time I also share thoughts on price action & fundamentals, technical analysis with Citytelegraph Team. These thoughts are not any kind of financial advise, so please do you won research before investing.

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