The Fluctuating Prices of Bitcoin and Cryptocurrencies
The prices of Bitcoin and Cryptocurrencies have experienced significant fluctuations over the past few months due to increasing economic and regulatory pressures.
Wall Street’s Seismic Event in the Crypto Markets
Traders are now gearing up for a seismic event on Wall Street in the Crypto markets worth $15.5 trillion in September. This comes after an insider at the U.S. Securities and Exchange Commission (SEC) warned buyers of Bitcoin and cryptocurrencies about the Binance platform, suggesting that Elon Musk could turn X (Twitter) into an updated version of the electronic bank PayPal called “Pi-Bi-El.”
Elon Musk’s Potential New Payment System
It appears that Musk is preparing to unleash a massive bombshell in the Crypto markets should he decide to announce a new payment system, an updated version of the electronic PayPal bank that offers low transaction costs compared to credit cards and generates income through user data usage.
Musk’s Denial of Integrated Trading Platform
Earlier this month, media reports indicated that Elon Musk denied the possibility of X adding an integrated trading platform within the app as part of a plan to transform the app into the world’s financial data giant. He continues to insist that X will never launch its cryptocurrency but rather serve as a competitor to Bitcoin, Ethereum, Ripple, and his favorite Dogecoin cryptocurrency.
PayPal’s Bank and PYUSD Stablecoin
PayPal’s bank was launched by Elon Musk’s payments giant X.com when it merged with Confinity in March and introduced a stablecoin linked to the U.S. dollar called PYUSD in hopes of success where Meta failed with its stablecoin Libra, which later became Diem.
Lack of Demand for PYUSD
In my opinion, despite the hype surrounding PayPal’s new stablecoin, very few people are using PYUSD and holding it in their wallets. I believe this could dampen the enthusiasm for X to follow in PayPal’s footsteps on Wall Street and may delay or even lead to the cancellation of Elon Musk’s plans due to a lack of demand from cryptocurrency users for PYUSD, given the availability of other alternatives.
BlackRock’s Bitcoin ETF
This comes as BlackRock plans to establish a long-awaited American Bitcoin exchange-traded fund (ETF), also known as the “approval seal.” The world’s largest asset management company has piqued Wall Street’s interest in Bitcoin and cryptocurrencies by applying for a Bitcoin ETF in June last year, bolstering the rise of Bitcoin, which leads the Crypto asset movement.
The Price Chart of Bitcoin (BTC)
The above chart clearly shows that the price of Bitcoin, the world’s largest Cryptocurrency, is trading near the support zone between $25,310 and $26,015. It has recently failed to break through this zone after a strong upward move that took it to $28,144 before retracing back to it. Technical indicators also suggest the possibility of an upward price movement.
Predictions for Bitcoin’s Price Range
In my opinion, Bitcoin is likely to remain in the range between $25,000 and $30,000 unless there are any developments in BlackRock’s approval for its Bitcoin ETF or any new regulatory or economic factors in the markets.