Bitcoin [BTC] price is trading around the $7000 region with a lot of uncertainty around the next move. The primary factors affecting its price currently are the PlusToken scam, selling pressure from miners and the halving speculations.
In this interview with on-chain experts David Puell and Willy Woo, Jacob Canfield attempts to clear the FUD around these issue in the market. The two experts expose the realities of the market and suggest a far grim picture for 2020.
On the PlusToken Scam
According to the experts, the entire price action this year can be attributed to the PlusToken scam in China.
The On-chain analytics around $10,000 this year was considered bullish. However, since September the trend has been downwards for most parts. The 187,000 BTC from the scam has been creating strong selling pressure. According to Puell, the current selling pressure has a higher acceleration than in 2018. Moreover, he also states that,
For the most part, Asia has rekt the west in terms of capturing liquidity and literally buying bottom and selling tops.
On Miner Capitulation
Currently, the difficulty ribbon of Bitcoin indicates a miner capitulation. This can be attributed to the fall in prices which has made the old miners unprofitable.
Nevertheless, according to Woo, the BTC from miners is being leveraged to buy new and more efficient equipment. Hence, what seems like miner capitulation is just an economic shift due to advancement in technology.
Hence, as the miners will continue to grow, the selling pressure from them will eventually decrease.
2020 Lays in Uncertainty as well
It is that time of the year when analysts have started making predictions for next year. In the past, Bitcoin halving has been fairly bullish to its price. However, this year the local factors are playing a stronger role than free-market characteristics.
Puell warns the crypto community of another scam, CloudToken and the impending Mt. Gox settlement next year. He said,
In March next year, we also have several legal factors coming from all parties involved in the trial of Mt. Gox. So we have to keep an eye for another load of selling pressure later in the next year.
Hence, traders expecting an all-around bullish year must look to lower their expectations. Nevertheless, short traders might not be as rewarding as well. According to Woo, Bitcoin is a great store of value for in terms of 4-5 year. However, given the volatility risk, FIAT is better in terms of monthly savings.
What other factors do you think are affecting the price? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com