By now it is lunch time again. We look at the live Bitcoin price and the prices of the top 25 crypto. Then we look at whether BTC really offers protection against inflation. Next, we take a look at important statements from the SEC and finally, we look at key Bitcoin prices in the short term.
We start of course with the live Bitcoin price and the prices of the top 25 crypto.
Live Bitcoin price and prices top 25 crypto drop
At the time of writing, the live Bitcoin price is quoting EUR 19,942.25 ($21,044.04). This is 1.94% lower than during our Bitcoin lunch yesterday.
The prices of most crypto from the top 25 are also negative. Apart from some stable coins, we only see red numbers. The biggest loss is currently with -7.58% for Dogecoin (DOGE). On the site of Tradeincrypto.com you can analyze all live crypto prices 24 hours a day.
Is Bitcoin really a protection against inflation?
Bitcoin has long had a reputation as a protector against inflation. With inflation skyrocketing and the BTC price nevertheless falling, people are wondering if that claim is accurate. In an extensive opinion article on Nasdaq, Jordan Wirsz explores this question.
He first explains how the Fed is trapped between rising inflation, U.S. government debt and low interest rates. When the Fed raises interest rates sharply, inflation will slow, but so will the interest rate on the national debt. The FED can then simply print money to pay the interest rates, but this in turn will lead to more inflation. This situation is called the “debt spiral.
He then explains using the ‘money supply (M2)’ that the Bitcoin price has much more correlation with monetary policy than it does with inflation. This analysis shows that the Bitcoin price, independent of inflation, can rise sharply if the Fed increases the money supply. He also notes that unlike in previous crises, bonds do not function as a safe investment. This puts the default structure of a portfolio at risk.
Finally, he concludes that value is created by work. As a result, gold and Bitcoin (through Proof of Work validation) could both be value-secure in times of inflation and rising prices, according to Wirsz. Because BTC is easier to trade than gold, he concludes that Bitcoin is thus indeed a good hedge against inflation.
You can read the entire article on BTC as an inflation hedge here.
SEC confirms good and bad news for BTC, market does not react
In the debate over whether Bitcoin and crypto are now security or not, SEC Chairman Gensler confirmed in an interview with CNBC the SEC’s earlier position that Bitcoin is a commodity and therefore not subject to the strict rules of securities.
He also indicated that there are other crypto currencies that the SEC does not consider to be securities, but would not elaborate on criteria or name other commodity crypto. You can watch the interview with Gensler here.
Gensler’s comments were very well received by the market. Therefore, it is all the more striking that the market did not react to this news since the stock prices are negative today.
With that, the question naturally arises as to what experts think about the Bitcoin price.
This is the Bitcoin price expectation in the short term. This price is key
Meanwhile, we see that the Bitcoin price is consolidating. The value of the largest crypto currency is currently hovering around $21,000 and this is immediately the key price that investors have their eyes on for the short term. Indeed, if this price is broken downward we can expect more bearish movement. Analysts anticipate that the price could fall back towards the support level around $19,000.
On the other hand, there is room for price increases if the Bitcoin price is able to rise steadily above $21,000 and this level can act as a support level. Further price increases towards the 20-day moving average ($22,900) and $24,000 (the 50% Fibonacci retracement level) then seem possible. For now, such a bullish BTC scenario seems to be the wish the father of the thought, as sentiment is bearish.
Of course, we will continue to monitor developments.
Want to stay up to date on the latest stock price developments?
You can always follow the developments yourself with our WANT crypto analyses or the background articles and previews on the crypto market and Bitcoin. Of course, you can also follow the live quotes 24 hours a day if you want to stay informed in real time. Are you interested in other investments besides crypto? Then our weekly Monday morning price forecast might be a reading tip. “Please note: We never give financial advice, so our contributions can’t be interpreted that way either. Always do your own research and decide on rational grounds if, when, what and how much you want to invest in.”