Bitcoin Price Prediction: BTC Stabilizes Near $35,000 Amid SEC Hiring Woes & Rising Fees
As the digital currency market continues to evolve, Bitcoin faces a new set of challenges and endorsements. Currently priced at $34,901, Bitcoin has seen a slight decline of 0.25% as of Tuesday.
The US Securities and Exchange Commission is grappling with its own set of issues, particularly the difficulty in recruiting cryptocurrency experts due to restrictions on employees owning digital assets. Meanwhile, the Bitcoin network is experiencing a significant transaction backlog, causing fees to skyrocket by an unprecedented 4,000%.
Amidst these developments, investment heavyweight Cathie Wood remains unwavering in her support for Bitcoin, advocating for its advantages over traditional assets like gold and cash, especially in a potentially deflationary economic climate.
These factors collectively contribute to a complex backdrop for Bitcoin’s price trajectory in the near term.
SEC’s Crypto Conundrum: Hiring Hurdles Amidst Employee Restrictions
The U.S. Securities and Exchange Commission’s (SEC) Office of Inspector General has published a report highlighting the agency’s struggles to recruit cryptocurrency experts. The study points out a scarcity of qualified candidates, intense competition from the private sector, and applicants’ reluctance to divest their cryptocurrency holdings due to SEC rules that prohibit such ownership.
The SEC is struggling to hire crypto experts, because they seem to want to HODL
The Securities and Exchange Commission’s Office of Inspector General, which supervises the financial regulator, says the agency is having a hard time hiring crypto expert…https://t.co/K8n9THfMCA
— Block Journal (@blockjournal) November 6, 2023
Concurrently, the SEC has escalated its enforcement actions within the crypto space, pursuing cases against individuals and companies, including Justin Sun and Do Kwon, as well as entities like Gemini, Genesis, Binance, and Coinbase.
The challenges the SEC faces in acquiring industry expertise may affect its ability to effectively regulate the cryptocurrency market, which, in turn, could influence Bitcoin prices.
Bitcoin’s Blockchain Bottleneck: Transaction Backlog and Fee Surge
As of November 2023, Bitcoin is experiencing a significant increase in transaction backlogs and fees. Since September 15, which marked the end of a period of reduced activity, the Bitcoin mempool has accumulated over 157,000 unconfirmed transactions, with fees for high-priority transactions climbing to $3.38.
This surge in congestion is largely attributed to the resurgence of Ordinal inscriptions, which processed nearly 700,000 transactions on November 4, making it one of Bitcoin’s busiest days. The subsequent influx of over 800,000 transactions within just two days exacerbated the mempool backlog and increased transaction costs.
📈 Bitcoin's transaction backlog is making headlines again! 👀
Since Oct 24, a flood of #Bitcoin transactions has piled up, with over 157,000 waiting.
🔥High-priority fees are up 4,000% at $3.38. #cryptomarket #Ordinals #cryptocurrency pic.twitter.com/FWbFRxyImR
— Bitinning (@bitinning) November 7, 2023
Notably, since October 3, the average fee for high-priority transactions has skyrocketed by 4,125% to $3.71. This heightened activity and the corresponding rise in fees underscore the pressing issues of network congestion and scalability within the Bitcoin ecosystem, potentially influencing Bitcoin’s market price.
Cathie Wood’s Bold Stance: Favoring Bitcoin Over Gold and Cash in a Deflationary Future
The CEO of Ark Investment Management, Cathie Wood, stated in an interview on Bloomberg’s “Merryn Talks Money” podcast that she much prefers Bitcoin to conventional assets like cash and gold.
Concerning Bitcoin’s ability to act as a hedge against both inflation and deflation, Wood was adamant that she would select it “hands down” if she were making a ten-year investment.
Bitcoin, gold or cash?
ARK Investment Management CEO Cathie Wood tells @merrynsw why Bitcoin wins "hands down" as an inflation hedge
Hear more on the latest Merryn Talks Money podcast https://t.co/2X3zzysv1R pic.twitter.com/blhwW57ARu
— Bloomberg UK (@BloombergUK) November 3, 2023
She stressed the digital aspect of Bitcoin and its ability to draw in younger investors. Because of Wood’s optimism over Bitcoin and her prediction of an impending deflationary time in the US economy, there may be more people who are confident in Bitcoin as an asset, which might lead to more investment and favorably affect its price.
Bitcoin Price Prediction
Bitcoin‘s market movement is currently lateral, hovering around a critical pivot of $34,990, which is of significant interest to day traders. The immediate obstacle for the price lies around $35,360, a level that has seen considerable trading activity lately. A successful move past this point could set the stage for an approach towards higher resistance levels at approximately $36,051, followed by $37,018.
On the downside, the first level of support is positioned at $34,693. Should bearish momentum take hold, further support may be found at $33,281 and then at $32,481.
The Relative Strength Index (RSI) is mildly optimistic at a reading of 57, suggesting a slight bullish bias without venturing into overbought territory.
Meanwhile, the 50-Day Exponential Moving Average (EMA) stands at $34,390, just below the current market price, indicating a potential uptrend on the horizon
Looking ahead in the short term, Bitcoin’s prospects hinge on the $34,693 support level’s resilience. A consistent hold above this support might see Bitcoin challenging the $35,360 resistance in the near term.
Conversely, a dip below this support could signal a descent, underlining the importance of setting stop-loss orders amidst these unpredictable market conditions.
Top 15 Cryptocurrencies to Watch in 2023
Stay up-to-date with the world of digital assets by exploring our handpicked collection of the best 15 alternative cryptocurrencies and ICO projects to keep an eye on in 2023. Our list has been curated by professionals from Industry Talk and Cryptonews, ensuring expert advice and critical insights for your cryptocurrency investments.
Take advantage of this opportunity to discover the potential of these digital assets and keep yourself informed.
Disclaimer: Cryptocurrency projects endorsed in this article are not the financial advice of the publishing author or publication – cryptocurrencies are highly volatile investments with considerable risk, always do your own research.
