Will Bitcoin Hit a New Record High Next Year? – Bitcoin Weekly News (5/8/2023)

Bitcoin hasn’t yet broken out of the range it entered after hitting the $31,000 level. The situation is getting quite boring for most investors because Bitcoin has been struggling in the range for more than two months. Before hitting the $31,000 level, it struggled in a tight range for around four weeks.

And after the breakout, most traders were expecting a huge pump but it re-entered the range. So, the traders are now getting disappointed by the boring price action. However, the last week’s Bitcoin weekly analysis highlighted that most traders are expecting a consolidation before the next big move.

In fact, experienced traders aren’t taking any trades because they think that Bitcoin is in a dangerous zone. The following Bitcoin weekly updates may give an idea of how Bitcoin may perform over the coming days.

Bitcoin Price Prediction by Bob Ras

Bob Ras, the co-founder of Sologenic, has claimed that Bitcoin’s price could double by next year. Ras has supported his claim with historical data. 2024 is going to be the halving year for Bitcoin. And the historic data shows that Bitcoin breaks the previous all-time high whenever the halving occurs.

Halving is the event when rewards for miners are cut in half. Ras claims that Bitcoin’s price will increase due to a decrease in supply. Ras also mentioned that more investors are now considering Bitcoin as a hedge against inflation due to rising interest rates and the banking crisis.

However, he also warned of the biggest downside risk that may get triggered by a credit crisis.

Russia May Take a Massive Chunk of Bitcoin Hashrate

The rising energy costs and tax burdens are causing trouble for Bitcoin miners in countries like US and Kazakhstan. Therefore, Russian analysts are expecting a new great migration of crypto miners. They think that Russia will attract most of these miners because energy costs are lower in the country compared to others.

Analysts have predicted that around 6% of mining capacities in China, Canada, and the United States will relocate to Russia due to restricted access to low-cost energy. They’re even expecting 50% of the miners from Kazakhstan to migrate their systems to Russia. According to data, these miners will consume around 3.95GW of electricity which will cost an average of $1.7 billion.

The experts have also requested the authorities to create a favorable investment environment by declaring crypto mining a legal business activity. It will persuade more miners to migrate their systems to Russia.

Liechtenstein May Use Bitcoin Payments for Government Services

El Salvador was the first country that adopted Bitcoin as a legal tender. Since then, the country has been criticized by many experts. In fact, IMF is has been warning the country to revisit its policy before the consequences appear. But there are many people that appreciate this step of the country’s authorities.

Now, Liechtenstein is also planning to use Bitcoin payments for government services. Prime Minister Daniel Risch is planning to accept Bitcoin payments and then convert them to Swiss Franc immediately. Swiss communities like Zug Lugano are already accepting Bitcoin payments for public services and certain taxes.

Liechtenstein has a history of crypto-friendly policies. The country became a hub of crypto banking and investment services after passing the Liechtenstein Blockchain Act in 2019. The country’s financial sector is combining progressive policies with its deep-rooted industry to boost the country’s overall potential.

Binance Resumes Bitcoin Withdrawals After Temporary Closure

Binance, the world’s biggest cryptocurrency exchange, halted Bitcoin withdrawals twice a day. The first time they resumed the withdrawals after a small delay but had to halt the withdrawals again due to heavy volumes and processing fees. The network wasn’t offering healthy rewards to the miners for logging traders.

As a result, a glut of pending transactions appeared on the blockchain. When they resumed the withdrawals, the price of Bitcoin dropped to the lowest weekly levels. Binance is the biggest cryptocurrency exchange. And such actions spread fear among a vast majority of people. Therefore, Bitcoin’s price may struggle over the coming week.

Bitcoin Technical Analysis

Bitcoin’s price is still trading in the pattern that was shared last week. It was highlighted last week that Bitcoin may enter a tight range over the coming days. So, the price is performing almost accordingly. However, it’s worth noting that the price struggles a lot while it’s moving upward. But it slides really fast to the downside.

So, it can be an alarming sign for Bitcoin bulls because the price may break below this triangular pattern. Experienced traders are reluctant to open a new trade unless the price breaks out of the pattern.

Conclusion

Bitcoin has been consolidating in a tight range, and traders are waiting for the next big move. Predictions for Bitcoin’s future include a possible price doubling by next year due to the halving event, and the possibility of Russia attracting more Bitcoin miners. There is some other news that supports a bull run. But the investors shouldn’t overlook the risk factors.

If you need regular updates about Bitcoin and the crypto market, feel free to subscribe to our weekly newsletter.