News Recap: Bitcoin Price Predictions, EU Regulatory Framework and more…
For the last two weeks, Bitcoin has seen a slower than usual price action. Despite this, big price action predictions headlines are still appearing alongside some more clarity on regulatory frameworks.
CME Futures Gap at $9,600
As it has been discussed previously, there is a CME Futures Gap at $9,600 which has not yet been filled. Even though Bitcoin’s price action corrected within the past two weeks, the price did not fill this gap entirely. A lot of traders seemed to have front-run the price as it dipped close to $9,800 pushing it back above the $10,000 level. Having this into consideration, it is important to see the following levels ahead. Breaking the $11,000 – $11,200 might lead Bitcoin to further level at $12,000. Contrary to this, if the price action went back down to $10,000; the possibility of it revisiting lower support levels below the CME Futures Gap at $9,600 increase.
Bitcoin’s Stock-to-flow Model
PlanB, the creator of the original stock-to-flow model, reiterated that the current price action is within his prediction. Additionally to this, he calls for an average BTC price of $288,000 before 2024. In a tweet on September 14th, he highlighted the increasing signs that BTC/USD is due to repeat historical gains. When asked about the source of the funds that would propel Bitcoin to those levels, he pointed out investors from countries with predatory governments and billionaires/millionaires hedging against quantitative easing. It is important to highlight that recently the FED pointed out that they would be extending the quantitative easing and inflation up to potentially 2023.
Apple Forces Coinbase to Change its Crypto Products
Brian Armstrong, CEO of crypto exchange Coinbase, alleged that Apple is stifling innovation in the cryptocurrency sector by sidelining DeFi, which can be seen as an anti-competitive measure. In a tweet on September 11th, Armstrong clarified that a lot of the functions in the Coinbase App were hindered by Apple’s policies. As seen in a Cointelegraph article, “According to Armstrong, Apple has told Coinbase that it is prohibited from adding two specific functionalities to its iOS apps: the ability to earn money using cryptocurrency and access to decentralized finance (DeFi) apps.” This is definitely not the first time that Apple has used its size and power to enforce App policies. Other cases such as Cloud Gaming are still ongoing showing Apple’s lack of flexibility.
EU to See More Comprehensive Crypto Regulations by 2024
The European Union is planning to incorporate cryptocurrencies and blockchain technology into its main processes by 2024. Within this timeline, the EU plans to deliver regulations that will promote blockchain and digital asset usage for international money transfers. As reported by Reuters, “By 2024, the EU should put in place a comprehensive framework enabling the uptake of distributed ledger technology (DLT) and crypto-assets in the financial sector [...] It should also address the risks associated with these technologies.”
More about the author:
Patrick Maldonado is a Cryptocurrency Trader & Market Analyst at Alphachain Capital.