Bitcoin Bulls Hold the Line


Luke Rexing, Contributor

Until now, Bitcoin and other cryptocurrencies have seen a slow and steady decline in value over the past four months. There has been a lot of sideways action and speculation regarding the asset class after reaching a higher low of roughly $35,000 in January of this year. Currently, Bitcoin has a value of about $42,000 and has been hovering around this value since the beginning of February. There has been a lack of price action to the upside, as well as to the downside, showing that the market is not quite sure where the asset is heading in the near term. As a Bitcoin and crypto bull, I believe that the consistent tests of the $40,000 level are cementing a region of support. There are many people who still hold their coins despite the recent uncertainty stemming from geopolitical instability. 

With the recent and ongoing news of Russia and Ukraine flooding the media, cryptocurrencies have seen much more stability than previously expected. It has also shown a very powerful use case, as it is very difficult to transfer money to those in need in Ukraine. With its decentralized nature, Bitcoin and other cryptocurrencies have been used as a donation to support Ukrainian troops. As of March 4th, there had been over $50 million donated in various cryptos and NFTs to the government, of which $15 million has been spent. This spending includes providing bullet-proof vests along with other military supplies. This is a perfect example of realized gains coming from a previously very speculative asset class. With governments becoming increasingly aware of cryptocurrencies use cases, it is pushing the message that it will only get bigger from here as regulation is most certainly on the way. 

Regulation may seem negligent considering the decentralized nature of crypto, but in the long run, it is bound to allow significantly more growth from the asset class. Regulation will make these assets much more appealing to the biggest players in the industry: institutions. With Bitcoin, Ethereum and other currencies, there is no doubt that big institutional investors have a close eye on getting some on the balance sheets. 


“To be regulated is to be legitimized, so it’s a question of who will be on what side of that, and what those regulations will look like,” according to Josh Lipsky, Senior Director at the Atlantic Council.


March 9th of this year marks the first time that the White House has weighed in on cryptocurrencies, putting in place the idea that there are still murky waters, but in recent light there has been more clarity. Blockchain and the idea of decentralization are moving to be key components of the economy, and may be an integral part of our lives in the near future.


The Blockchain Association called the order “further proof that the crypto ecosystem is now a vital and inseparable part of the national economy.”


All of this has contributed to very uncertain market conditions, neither proving a case for the bulls or the bears. Instead, we have seen what some like to call a “crab” market, in that we are witnessing consistent sideways, yet tightening price action. Could we be in the calm before the storm? Some crypto investors see it this way, gearing up for a major move to the upside, as well as stacking cash positions in lieu of a final capitulation prior to a pump of a lifetime. Regardless of the speculation considering the near term, many will now agree that cryptocurrencies are no longer a safe haven for crime, no longer an invaluable sentiment, but rather a worldwide movement towards closer connection for future generations and their wallets.