- Bitcoin looks for support at USD 9,700 as it relinquishes USD 10,000
- Crypto analyst PlanB confirms that USD 100,000 is still well on track using the stock-to-flow model, even if it could dip as low as USD 8,200 before May this year
- Ukraine has decided against regulating crypto mining activities, throwing its support instead behind decentralized and open global networks
Bitcoin continues to lose some of its gains of the past week, trading right now around USD 9,800 after an earlier low of USD 9,711 (CoinDesk). It has been over 24 hours since the last USD 10,000 price mark too, so the bears will be feeling they have a chance to sell some more and pressure Bitcoin into old territory, though support is particularly strong at USD 9,700.
Nevertheless, the bulls should not give up now, as the statistics on markets along with fundamentals are still strong even after this pullback. The most hardcore will point to the fact that price has still yet to go down below the 200-day moving average, but one analyst says we could see it going below the 200-week moving average price, although he says also that it will not go lower than USD 8,200. PlanB, who is credited with creating the now-famous stock-to-flow Bitcoin price forecasting tool, also shoots out a prediction that BTC/USD would touch “above $10,000” by May 2020 — the same month the Bitcoin block rewards will be reduced by 50% in a much-anticipated halving event many believe will trigger a bull run that will be behind the next parabolic run for Bitcoin price to USD 100,000 before December 2021.
It is not S2F related, and also not WMA200 related. It is a new not yet disclosed indicator that is the result from chain analytics. So if it would drop below $8200 (what I do not expect), then I will drop that indicator.
— PlanB (@100trillionUSD) February 10, 2020
PlanB released the predictions on Twitter, following up his claims that Bitcoin would actually remain above the 200-week moving average, which was 3% in growth last December and 4% in growth this year so far.
His stock-to-flow model in fact, leaves some room for further retracement, since price forecasting using that model should equate to a price today of around USD 8,400. This model primarily predicts Bitcoin’s price trajectory by looking at the supply available (Stock) versus the amount of new supply added to circulation (Flow), and in Bitcoin’s case, this puts the digital asset firmly in the territory of hard money assets like gold, with a supply that is near-impossible to manipulate, unlike national fiat currency. In summary? USD 100,000 could come between 2021 and 2024.
If you’re in Ukraine, then you’ll be happy to wait for that outcome, especially with the latest news suggesting that the government there will not monitor crypto mining as a regulated activity. Its most recent manifest, which we brought up on BitcoinNews.com, underlines how virtual assets mining will not be required to be state-regulated, since the protocol itself and its network members already regulate this. This according to the Ministry of Digital Transformation of Ukraine.
In its official statement, it said that the state aimed to contribute to the further development and market introduction of blockchain technologies based on decentralized and open global networks. It added[translated]:
“We remain loyal to mining activities that form part of open decentralized networks. Mining does not require regulatory activity from governmental oversight bodies or other third-party regulations, this activity is regulated by the protocol itself and network members.
We support any innovation using these digital technologies, even if they are partially unregulated and / or not defined by national law. We will create sandboxes for their evaluation and implementation, market need testing and risk management.”
The agency also pledged to establish legal regulation that might arise in crypto market, promoting interaction between the financial market and virtual assets, global best practices on their taxation. It also promised to work towards establishing abuse prevention and fraud from business and law enforcement.
This may not have come as a surprise to most people, since Ukraine has made no secret of its desire to pursue digital currencies and blockchain. Just last month, the Ukrainian Finance Minister named the State Financial Monitoring Service of Ukraine (SFMS) as the responsible authority in identifying the source of origins for any funds on the crypto wallets of its citizens, as well as detecting how those funds have been spent.
A month previous, the state approved the final version of a money laundering law relating to digital and virtual asset service providers, aligning with FATF guidelines.
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