Bitcoin Ready To Rally To $70,000 level As Institutional Demand Remains High

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Bitcoin is gaining bullish momentum after the cryptocurrency bounced off the lower Bollinger Band. On Wednesday, a wave of selling dominated the BTC market after the price dropped below $56,000.

BTC ready to rally to new all-time high

Unfortunately, the selloff resulted in $1.4 billion liquidations, with some analysts suggesting that this is the last clearance of overleveraged long traders before then crypto can run to $70,000. The market seems to have moved ahead of itself this past week, and one indicator is the brisk Kimchi premium rise, followed by a 7% decline in price on Wednesday following concerns among traders that it could be a sign for a market top.

However despite the downturn, on-chain data analysis shows that BTC could soon jump to a new all-time high as miners, long-term traders, and whales limit selling and institutional demand remain high.

China could front BTC against the US dollar

Bitcoin is getting support from all sections, and Palantir and PayPal founder Peter Thiel recently urged the US government to have a tighter hold of crypto regulations in the country. The billionaire and pro-BTC maximalist said that China could win the arms race with the US adding that China could use the crypto as a weapon against the US dollar.

Thiel said that the Chinese are interested in seeing two global reserve currencies instead of just the US dollar. He said that China wants to use BTC as a weapon against the US dollar. This is not the first time China is trying this because in the past it tried to make the Euro fill that role but failed. The developments come when China is planning to launch its central bank digital currency, the digital yuan. Regarding whether the digital yuan will be a threat to the dollar, Thiel said since it is issued by China’s central bank it is a totalitarian device and it is not real crypto.

Chinese BTC mines undercutting climate goals with huge power consumption

Chinese bitcoin mines account for almost 80% of global cryptocurrencies trade, and their power consumption risks undercutting the climate goals of the country. According to a study published in the Nature journal, by 2024, Chinese BTC mines will generate around 130.5 million metric tons of carbon emissions.

Mining companies in China access cheap power and hardware, and as of April 2020, they accounted for 78.89% of global BTC blockchain operations. The operations involve mining new cryptos and keeping track of crypto transactions.

Signal testing crypto trading feature

Messaging app Signal is piloting a payment feature that can allow users to trade crypto MobileCoin from the messaging app. Signal has introduced a beta version of the app to test Signal Payments. Users can access the section and link their MobileCoin wallet to the app and use it to send crypto to family members and friends. Users can also receive funds from other users and top up MobileCoin wallet by purchasing on FTX crypto exchange.

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