Bitcoin is currently trading just above $9,000 per coin after a week of moving above and below this price range. Just when an overall bullish market was hinting at a break over $10,000, the cryptocurrency suffered a price correction that was likely triggered by profit makers who wanted to capitalize on the $2,000+ increase the cryptocurrency saw since the middle of the month. Currently, trading signals indicate that the price will be growing further, although one can’t say with certainty where the market will head next.
In other interesting news, billionaire Warren Buffet gives his 2 cents on Bitcoin investing at Yahoo Finance and says that funding cryptocurrency purchases isn’t really an investment. According to Buffett, Bitcoin couldn’t be considered a real investment due to its lack of intrinsic value. In an interview for the finance segment, the billionaire explained that when people invest money in Bitcoin they “don’t have anything that is producing anything” and they are only “hoping that the next guy pays more”. Thus, he concludes, investing your money into crypto is mostly “speculating”.
Buffett has been dubbed the “Oracle of Omaha” due to his influence on other investors who stick by his words carefully to determine whether something is worth investing in or not. Nevertheless, he also famously declined to invest in Amazon and Google – companies that proved to be one of the best investments in the 21st century.
Market Stays Pro-Buy
During the past 7 days, Bitcoin dropped from being close to $10,000 to losing over $1,000 in value in a few days. The lowest price point throughout this period was $8,732.63 and it was hit on Thursday afternoon while the highest price point was $9,526.54 and was reached on early Sunday morning.
As market signals indicate, the price decline was triggered by a high number of active traders who pushed the 24-hour volume over $12 billion. Since then, the volume subsided and is currently at $7.2 billion and slowly rising, while the market cap is at $155 billion.
Our analysis shows that the trading market is bullish, with 9 out of 12 oscillators and 9 out of 12 moving averages sending buying signals. Stochastic and MACD are also in the green zone, indicating bullish trends, and the SMA 100 is over the SMA 200, signaling there’s less resistance to be found to the upside. If the buying trend continues, we’ll see a move towards $9,500.
Will Bitcoin Replace Cash in 10 Years?
After a tough quarter, Bitcoin is once again at the center of the public’s spotlight as the cryptocurrency is nearing $10,000 in value and 17 million mined coins. The question that most financial media portals now seem to be asking is whether Bitcoin will have what it takes to become a replacement for paper money within the next decade.
According to Business Insider, there are a number of proofs that support this claim. For starters, we now have rumors of Barclays and Goldman Sachs considering launching trading desks for cryptocurrencies but also Nasdaq looking into becoming an exchange “over time”. At the same time, we have more money being flowed into blockchain-related businesses, with numbers from the first quarter of this year showing that the monthly average of $55 billion in blockchain investments was exceeded by far.
These “trends”, along with the involvement of the Rockefellers and notable investors like Tim Draper, as well as the growing shift towards electronic forms of payment like is the case with Sweden and the US, could all help make cryptocurrencies the number one payment method within 10 years.