By now it is time again for the last lunch of the working week and thus for the live Bitcoin price and the prices of the top 25 crypto. We ask why prices are rising and whether BTC is a safe haven against inflation. Then we see why the coming week could well be the week of truth for Bitcoin.
As the first course of this BTC lunch, we naturally serve up the live Bitcoin price and the prices of the top 25 crypto.
Live Bitcoin price and prices top 25 crypto rise
At the time of writing, the live Bitcoin price is quoting EUR 28,592.94 ($30,274.66). This is 4.20% higher than during our Bitcoin lunch yesterday.
The prices of most other crypto from the top 25 are also rising. Except for a few stable coins, we see only green numbers. The biggest gain of the day so far is for Avalanche (AVAX) with + 11,30%. On the site of Tradeincrypto.com you can analyze all live crypto prices 24 hours a day, including the entire weekend.
Bitcoin is rising and these are the 4 main causes
We can currently identify 3 causes for the rise in the BTC price.
First, we see that the whales are stirring. They continue to buy BTC as the market panics. As a result, there seems to be a tentative bottom in the price. Of course, the question is how long this will last.
In addition, we see that crypto investors are once again turning back to a relatively reliable currency like Bitcoin. We see the market share of the largest crypto currency increasing rapidly (over 3% in 10 days).
This rising market share and the fact that Bitcoin is trading above the crucial $30,000 price again is increasing confidence in BTC.
Finally, we see that the Bitcoin is responding well to the falling dollar price. This, of course, raises the question of whether the Bitcoin can live up to its function as a hedge against inflation risk.
Is Bitcoin a good hedge against inflation?
There is much speculation about whether Bitcoin is a good protection against loss of asset value due to inflation. In lieu of speculation, MicroStrategy top executive Michael Saylor shares some numbers based on which he answers a resounding “yes.
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#Bitcoin is the best hedge against #Inflation.
Since $MSTR announced its first BTC purchase August 11, 2020, bitcoin has appreciated 149%, outperforming Silver (-17%), Gold (-9%) Nasdaq (5%), S&P (18%), CPI (11.2%), M2 (19%), US Homes (28%), & PPI (33%).
– Michael Saylor (@saylor) May 12, 2022
Yet not everyone agrees with Saylor. For example, Gavin Brown, senior lecturer in financial technology at the University of Liverpool, argues that the value of Bitcoin may well fall sharply. He cites a 51%-attack of the BTC and regulation as causes, but he also believes the rapid and high volatility of the BTC price stands in the way of the BTC as a stable counterweight to inflation.
Martin C. Schmalz, professor of finance and economics at Saïd Business School (part of Oxford University) also does not believe in Bitcoin as a hedge against inflation. Indeed, he sees a negative correlation with governments’ interest rate decisions. When interest rates rise, the price of Bitcoin falls, he analyzes. On the other hand, we see scholars who, on the basis of other test methods and comparisons, do in fact see support for the proposition that Bitcoin offers protection against inflation. So the debate seems to be over for now.
Will the coming week be the week of truth for Bitcoin? Weekly forecast!
We saw yesterday that the Elliott Wave Analysis confirms the thoughts of many experts. Based on these analyses and opinions, the bear market is not yet over and people are anticipating sharply lower price targets.
Today’s rebound in the Bitcoin price seems to contradict this. However, the analysis of the Bitcoin price forecast for next week shows otherwise. Let’s look at the weekly forecast.
Basically, the expectation is that there remains room for limited growth as long as the price stays above $30,000. As long as this happens, there is room to advance via breaking resistances at $31,309 and $32,671 to a Bitcoin price between $35,000 and $36,000.
Dead cat bounce for Bitcoin?
Anyone who thinks that the BTC price will return to a bullish pattern once it has broken resistances is wrong. Indeed, onchain metrics indicate that a major correction is yet to come. This could bring the price back to $18,179 after a rise. How this comes about you will see in this analysis with charts.
If the price indeed rises first to $36,000, a fall back to around $18,000 would be a 50% drop in price. This proved in previous cases to be enough for a bottom that sets the tone for a new rally. The question is whether institutional investors and whales will let it get that far and not get in earlier to buy the dip and thus limit the damage.
As a retail investor, it is important in these times to remain above all rational and to be inspired in your own research by these 5 tips for making profits in an uncertain market.
We will of course continue to follow the developments and report extensively in next Monday’s Bitcoin lunch. Have a great weekend!
Want to stay up to date with the latest 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.”