By Bitcoin Price Prediction: Bitcoin Dips Nearly 1%, Eyes ETFs & Munger’s Critique in Market Rally
Bitcoin, the pioneering cryptocurrency, has experienced a slight dip of nearly 1% amidst a broader market rally, drawing the attention of investors and analysts alike. As it navigates through the tumultuous tides of the financial markets, Bitcoin‘s trajectory is influenced by a myriad of factors.
Among these are the burgeoning interest in Exchange Traded Funds (ETFs) related to cryptocurrencies, and the critical gaze of prominent financial figures like Charlie Munger.
This Bitcoin price prediction delves into the complexities of its recent performance, examining the interplay between market enthusiasm for ETFs and the weight of Munger’s critique, to discern the potential direction of this digital asset in the ever-evolving financial landscape.
Dollar’s Delicate Dance: Stability Post-Fed Guidance with Underlying Vulnerabilities
Following the Federal Reserve’s less aggressive approach, investors anticipated an additional drop in the value of the U.S. dollar, which kept global currencies stable.
While the euro was trading at $1.0727, the dollar index remained unchanged at 105.07. The dollar index experienced its worst decline since mid-July last week, falling by more than 1%.
After the labor market data was reported on Friday, the US dollar index had one of its largest single day drops of 2023. pic.twitter.com/S1bhbGqr14
— Satoshi Stacker (@StackerSatoshi) November 5, 2023
This downturn has provided support for global markets, which enjoyed their best week in a year. While some analysts anticipate that the dollar will continue to decline throughout November, others remain wary, believing that medium-term factors supporting the USD may reemerge.
Cryptocurrencies like Bitcoin could benefit from a weakening dollar, as evidenced by the cryptocurrency’s stability around $34,905 amid speculation that central bank tightening cycles may be nearing their end.
Hong Kong’s Crypto Ambition: Paving the Way for Spot Crypto ETFs in Asia
Julia Leung, the CEO of the Securities and Futures Commission of Hong Kong, revealed in a recent interview that the city is considering allowing ordinary investors access to Bitcoin spot exchange-traded funds (ETFs).
Leung stated that Hong Kong is open to innovations that leverage cutting-edge technologies to enhance efficiency and consumer satisfaction.
Hong Kong is assessing whether to allow exchange-traded funds that invest directly in crypto as it seeks to create a digital-asset hub https://t.co/N7mkRTkIPm
— Bloomberg Crypto (@crypto) November 5, 2023
Currently, futures-based cryptocurrency ETFs are legal in both Hong Kong and the U.S., yet adoption remains somewhat limited. Spot ETFs for cryptocurrencies like Bitcoin, however, could lead to broader public acceptance.
If implemented, this development could enhance accessibility and liquidity in the cryptocurrency market, potentially elevating Bitcoin’s price.
NFT Markets Surge: A 18% Leap to $106 Million with Bitcoin and Ether in the Spotlight
The non-fungible token (NFT) market witnessed a significant rebound during the week of October 29 to November 5, 2023. Sales increased by 18.30% over the previous week, reaching a total of $106.32 million.
Ethereum-based NFTs led the charge with $60.91 million in sales, marking an 8.55% increase over the week. Bitcoin-based NFTs also made significant contributions, with sales of $13.17 million representing a staggering 154.75% growth from the previous week and setting new records.
NFT Markets Rebound With 18% Rise to $106M; Bitcoin NFTs Take Second Place Under Ether’s Leadhttps://t.co/WRJn0IPNmT
— John Morgan (@johnmorganFL) November 5, 2023
Though this resurgence in the NFT sector does not have a direct impact on the price of Bitcoin, it bodes well for the broader cryptocurrency and blockchain industries.
The expansion and acceptance of cryptocurrencies are facilitated by NFTs and blockchain technology, which may enhance Bitcoin’s value.
While the NFT market’s recovery may not immediately affect Bitcoin’s price, it does demonstrate sustained investor and user interest in the cryptocurrency space, potentially attracting more participants to the market.
Munger’s Harsh Critique: Bitcoin Dubbed a ‘Stink Ball’ in the Currency Sphere
The 99-year-old Charlie Munger, Vice Chairman of Berkshire Hathaway and a close friend of Warren Buffett expressed his worries about the escalating cost of Bitcoin in a recent interview with the Wall Street Journal.
He called Bitcoin an “artificial currency” and likened it to a disruptive component in the conventional currency’s established formula. Munger underlined how crucial a strong currency provided by a sovereign is to facilitating trade and allowing civilization to function.
Charlie Munger: To make the currency respected widely, the trick we’ve used is the sovereign issues it. When you start creating an artificial currency (bitcoin)…you’re throwing your stink ball into a recipe that’s been around for a long time, that’s worked very well for a lot of…
— Wu Blockchain (@WuBlockchain) November 5, 2023
Although Munger is well-known for taking a negative view of Bitcoin, his remarks do not directly affect the price of the cryptocurrency; rather, they highlight the skepticism that certain traditional financial professionals have towards cryptocurrencies.
Such opinions may have an impact on investor sentiment and short-term price swings by discouraging certain investors and could be behind the current decline in BTC prices.
Bitcoin Price Prediction
In the current financial landscape, Bitcoin is trading sideways, having a pivot point is around $34,990, crucial for intraday traders. Immediate resistance is near $35,360, a congested area in recent sessions. A breach could aim for the next resistances at about $36,051 and then $37,018.
Conversely, immediate support is near $34,693, with additional levels at $33,281 and $32,481 if selling pressure increases. The RSI is at 57, slightly bullish but not signaling overbought conditions. The 50-Day EMA at $34,390, just under the current price, suggests a short-term bullish trend.
Bitcoin Chart – Source: Tradingview
Short-term outlook: If support holds, Bitcoin may test the $35,360 resistance soon. However, falling below $34,693 could lead to further declines, highlighting the need for stop-loss orders in these volatile conditions.
Top 15 Cryptocurrencies to Watch in 2023
Stay up-to-date with the world of digital assets by exploring our handpicked collection of the best 15 alternative cryptocurrencies and ICO projects to keep an eye on in 2023. Our list has been curated by professionals from Industry Talk and Cryptonews, ensuring expert advice and critical insights for your cryptocurrency investments.
Take advantage of this opportunity to discover the potential of these digital assets and keep yourself informed.
Disclaimer: Cryptocurrency projects endorsed in this article are not the financial advice of the publishing author or publication – cryptocurrencies are highly volatile investments with considerable risk, always do your own research.
Enter your email for our Free Daily Newsletter
A quick 3min read about today’s crypto news!
