After a volatile weekend, Bitcoin has managed to cut losses and print a solid green weekly candle. It seems that the bulls are finally taking their time in a month that has seen few US macroeconomic events. The Federal Reserve will not make an interest rate decision until September.
Bitcoin fundamentals are strong
The fundamentals for the Bitcoin network are currently undergoing strong development. Among other things, the difficulty level for miners seems to increase for the second time in a row in the coming days. Every 2,016 blocks – about two weeks – the difficulty for mining Bitcoin is adjusted based on the hashrate in the network. Has the hashrate increased during this period? Then the difficulty increases and vice versa.
Now Bitcoin is likely to record its second consecutive rise this week. Which means miners connect new equipment to the network and capital flows into the industry. In general, that is a good sign for the price. The question for the hodlers, of course, is how stable the recent rallies are and whether we are actually dealing with the start of a new bull market.
Peter Schiff Is Bearish About Bitcoin
It should come as no surprise that Peter Schiff has also shed his light on Bitcoin’s price performance. Peter Schiff is arguably the most well-known Bitcoin hater in the world. Peter Schiff is a so-called gold bug, someone for whom gold is the most important asset of his portfolio. Gold and Bitcoin are two investments that compete with each other as a store of value, which means that Bitcoin is regularly criticized by Schiff.
If it is up to Schiff, Bitcoin’s rally is in any case a short-lived one. “The pattern remains hugely bearish. There is a double top and a head and shoulders top,” said Peter Schiff. Based on its analysis, the gold bug expects Bitcoin to drop to at least $10,000. An analysis that we probably don’t have to worry about, since Schiff has been wrong with his statements about Bitcoin for years.
