After the price of Bitcoin hovered between $30,000 and $35,000 for weeks, the currency returned to showing signs of slow recovery and hit $46,000 this week.
3 weeks ago Bitcoin started to rise sharply and hit $39,000, has since moved up slowly and is now trading at around $46,000, its highest since mid-May.
The high cycle has not ended…
Historically, Bitcoin bull cycles precede an event known as halving (the last was in 2020), which takes place every 4 years and halve the reward of mining.
But previous cycles tended to be shorter (relative to time), I believe the current bull cycle is being longer due to the effects of the pandemic: monetary stimuli, negative interest rates, bond issuance, etc.
We had several effects and consequences of this on the economy, inflation that did not take long to appear and is still growing, bringing with it a loss of purchasing power that ends up affecting the poorest.
Bitcoin investors are more concerned about inflation than regulation
An infrastructure bill that could impose certain tax burdens and restrictions on the US Senate was recently approved by the US Senate. cryptocurrency market.
“The Senate voted 69-30 to approve the infrastructure project with the original crypto-tax clause (see below). Then, the project goes to the Chamber, which is in recess until September 20th. We don’t know yet if we’ll have a chance to make amends there. TBD.”, said Jake Chervinsky, attorney and general counsel for the Compound.
The Senate has voted 69-30 to pass the infrastructure bill with the original crypto tax provision (see below).
Next, the bill goes to the House, which is in recess until September 20. We don’t know yet if we’ll have a chance to make amendments there. TBD.https://t.co/y4KYjQyjnC
— Jake Chervinsky (@jchervinsky) August 10, 2021
There appears to be nothing that can deter lawmakers from the world’s largest economy, who aren’t concerned with halting the high spending that has driven a US government divide of more than $28 billion.
Despite the regulations that are about to be “passed” and others already underway, investors seem to be more concerned about inflation and certainly everyone should.
Even with the regulations taking place, Bitcoin once again had a price recovery, demonstrating an optimistic scenario for the coming months.
Inflation in Brazil
The IPCA (Broad National Consumer Price Index) for the month of July was recently released, which reached the highest level since July 2002, reaching 9% in 12 months.
Inflation is certainly not transitory, it may even happen at intervals, but it will have repercussions for a long period. An economy worldwide affected, in all countries by common causes, recovery will not be very fast.
On the other hand, a positive side for investors and future investors, it’s the ideal time to expose yourself to deflationary assets like Bitcoin, to protect itself from the damage that happens to the economy due to the governmental monetary system.