Chinese miners in Texas, Fed's monetary policy, and markets' hope for bright future - Kakiforex.com - Financial Market Media No. 1 in the World Chinese miners in Texas, Fed's monetary policy, and markets' hope for bright future Chinese miners in Texas, Fed's monetary policy, and markets' hope for bright future
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September 7, 2021

Chinese miners in Texas, Fed's monetary policy, and markets' hope for bright future

 The world's leading cryptocurrency continues to rise almost nonstop. Its quotes have grown by almost $ 24,000 over the past month and a half. Moreover, there was not a single sensible correction during this period, and the reasons why bitcoin is getting more expensive are still very difficult to formulate. There is no doubt that one can always say that the markets just started buying bitcoin, so it began to grow again. This will be absolutely true because this is exactly how any market works. However, what were the reasons that the markets suddenly began to buy the main cryptocurrency at the time it was preparing to rise to the level of $24,000? Many experts find it difficult to answer this question. Nevertheless, we have several possible options at our disposal.


First, as mentioned several times, new tax legislation may be enacted in the United States soon, and due to this, many transactions with cryptocurrencies and digital assets will be processed by the US Internal Revenue Service. In other words, buying/selling bitcoin will be taxable. Therefore, many investors want to get enough of buying now, while there is still no taxation.


Second, the Fed continues to pump the US economy with hundreds of billions of dollars and this money must settle somewhere. We see that the stock market continues to grow and inflate like a soap bubble. Bitcoin's price has also been growing for most of the last year and a half. Therefore, it is possible that Bitcoin is showing growth, while the Fed is still pouring huge amounts into the US economy. However, the Fed can pour money into its own economy for a very long time, since Jerome Powell has not yet given any signals about the end of QE.


Third, the miners who were repressed from China have already found their "new homes". Accordingly, their equipment is already connected and brings them profit again. Most of the Chinese miners have moved to the state of Texas, which is becoming the new world capital of cryptocurrency. Obviously, there is no point in denying that market participants themselves are actively buying Bitcoin, since a lot of traders became active again after the growth to $ 40,000 per coin.


In this case, Bitcoin can really grow at such a pace toward its absolute highs this year. We would like to draw your attention to the fact that the current growth is very calm and stable. That is, Bitcoin is growing little by little, but every day. The next target for the upward movement is the level of $ 56,500 and there are no signals for a possible downward reversal at this time. Therefore, it is suggested to continue buying bitcoin now. From our point of view, a correction is still likely, but it will require specific technical signals so that it can be worked out.