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⚡Bitcoin's February Resurgence🔁

Croxroad

28 Jan 2024 — 3 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🐂 ETF Exodus Subsides

The article discusses the potential for Bitcoin's price to rebound to $45,000 in February 2024. Notably, the recent market data suggests a shift in investor sentiment, with a decrease in sell-off actions from ETF speculators. The article highlights key insights, such as Bitcoin's recent peak at $42,200, an increase in BTC moved to long-term storage, and a potential resistance at the 20-day SMA price of $42,500.

Following the SEC's spot ETF approval verdict on Jan 11, Bitcoin experienced bearish price action. However, with two weeks of Bitcoin ETF trading, the hype has subsided, and investors are strategically positioning for a bullish start to February. The article points out that $210 million worth of BTC has been shifted into long-term savings in the last 48 hours, as depicted by CryptoQuant's exchange supply data.

The decline in exchange supply is seen as bullish, indicating investor preference for long-term storage and fewer coins available for trading. This, combined with a potential increase in demand, could trigger a significant Bitcoin price breakout towards $45,000.

The forecast acknowledges potential challenges, with the 20-day SMA at $42,555 posing initial resistance. A breakout above this zone could pave the way for a rebound to $45,000, but a reversal below $38,000 may give bears control. The article emphasises the importance of monitoring key reversal points and suggests that, according to the lower Bollinger Band, bulls might regroup around the $38,092 area to prevent further losses.

🎺 Decrypting the Political Play

The article delves into the escalating discussion around a Central Bank Digital Currency (CBDC) and its emergence as a politically hot topic. Donald Trump has positioned himself against the idea, emphasising the potential threats to freedom posed by a government-controlled digital currency. Trump's opposition to a CBDC appears strategic, aiming to tap into the concerns of liberty-minded Republicans and privacy-focused Democrats.

The piece suggests that Trump's next move might involve embracing Bitcoin, positioning it as an anti-CBDC technology. The argument is that while a CBDC allows government manipulation, Bitcoin operates as a decentralised and resistant currency, appealing to those wary of central control. With the growing influence of the digital asset community, particularly Bitcoin enthusiasts, the article highlights the potential political impact in the upcoming 2024 campaign.

The narrative underscores the significant shift in digital asset ownership, with millions of Americans now holding digital assets. This group, identified as a political force, could play a decisive role in key battleground states. The article emphasises the potential sway of digital asset voters in pivotal states like New Hampshire, Nevada, Ohio, and Pennsylvania.

Trump's possible endorsement of a pro-Bitcoin agenda is presented as a strategic move, aligning with the changing dynamics and preferences of a growing voter base. The piece notes Trump's recent involvement in the crypto space, raising funds through an NFT collection. Ultimately, the article posits that embracing Bitcoin could be a low-risk, high-reward political gambit for Trump, connecting with a broad and influential demographic without significant downside.

📃 What Does the Bitcoin White Paper Say About the ‘Halving’?

The Bitcoin white paper intriguingly doesn't directly use the term 'halving,' but it thoroughly discusses the concept within the context of controlling the creation of new bitcoins. It outlines the fixed supply of 21 million bitcoins and the pivotal mechanism behind the halving process, where the rate of new coin creation or mining is halved approximately every four years.

Section 6 of the white paper provides insight into the philosophy behind this limited supply, drawing an analogy to gold miners adding gold to circulation by expending CPU time and electricity in the case of Bitcoin.