The Bitcoin price (BTC) started a new week at less than USD 500 from the USD 10,000 mark, but the sudden volatility remains. What should I pay attention to in the next few days?
Cointelegraph presents a weekly summary of the main factors that will influence BTC/USD price action this week.
The Coinbase exchange was offline due to a 5x spike in traffic during the Bitcoin rally
Stocks rise, but suspicions remain
Macromarkets seem poised to continue an upward trend despite the chaos surrounding the United States.
The S&P 500 was a solid pre-business Bitcoin Lifestyle on Monday, driven by the curious combination of the reopening of the US economy, but mass protests continued across the country.
Bitcoin seemed to gain in value from the protests late last month, but its overall relationship with traditional markets has weakened since the two crashed in mid-March.
Oil was also following the excitement after OPEC+ members agreed to extend a production cut.
Bitcoin supporters have sounded the alarm about the apparent „recovery“ of the stock markets from the coronavirus measures. In particular, Max Keiser has repeatedly warned that the purchase of „junk bonds“ by central banks was creating false competition and undermining the integrity of the markets.
The U.S. Pentagon created a war game to fight order with BTC
Difficulty and hash rate strengthen BTC
Bitcoin fundamentals continues its upward trajectory after last week’s second consecutive negative difficulty setting.
Both the difficulty and the hash rate have improved their position last week; the latter was around 111 EH/s, which is 4% more since Friday.
As Cointelegraph reported, the difficulty was in the process of booking a third downward adjustment in a week, but on Monday this was reduced to a forecast of -0.7%.
That reduction is just another sign that Bitcoin is „taking care of itself,“ as intended, through difficulty adjustments that encourage miners‘ participation and stabilize the average times of the blocks.
Along with the difficulty, other mining-related data has shown similarities to the bottom of the Bitcoin bear market in December 2018.