THE CIRCLE - The price of bitcoin rose to $ 5,000 last week. Pascal Ordonneau, former CEO of HSBC invoice finance, offers several explanations for this sudden rebound. "Spoiler": No, it's not a return to grace of cryptocurrency.
The beast is not dead. She began to stir. After tumbling from $ 10,000 to $ 3,000, bitcoin rose to $ 5,000 last week.
All the good reasons to think that bitcoin is not a currency and never will be remembered. It is slow (unable to compare with good old technologies such as Visa and PayPal), expensive to produce (we do not tell the electrical difficulties of the mining farms), marginal (its acceptability is confidential), very related (in spite of it surely) to the "darknet", with the malware and other inconveniences of the same kind.
All defenders of bitcoin and its disruptive technology have come to beg American authorities (and even Chinese) to set up derivative products, accept listed funds, facilitate transactions. In other words, the currency cult, anti-system, anti-state, anti-trusted third party, came to plead his case with regulatory authorities to survive.
Financial speculation
To give money to the people, to the citizens, to all those who had been dispossessed by the horrible "trusted third parties", banks and other operators, taking crazy tithes to produce a fundamentally public good, that was the purpose of this currency "revolutionary". The result ? Tasty ! The capitalization of bitcoin is in the hands of some "big whales", trade is reduced and bitcoin, far from being a currency, that which would have allowed everyone "to have according to his needs", became
a vulgar support for financial speculation with as much underlying as a Ponzi pyramid.
The sanction, as we have seen, has materialized in the form of a vertiginous drop in prices. They had "skyrocketed" from 1,000 to 10,000, they had to reach, the 25,000 in late 2019, to take off on the side of 250,000 etc .... They actually found themselves at 3,000 in early 2019 and had been hanging around for four months. Faced with this collapse, the defenders of the currency of the future were in their shoes: an Italian court decision recognized the responsibility of financial advisers not very scrupulous in terms of forecasts of bitcoin prices.
But no ! The proof that he is not dead, the proof that the advice was not bad, the proof that all that had been written about bitcoin was only misinformation and maneuvering of "shortists" without scruple, the bitcoin rebounded. And from 3,000, he has come back to life: 5,000.
"Fed effect"
Where does it come from, that this so-called money, which everyone was beginning to forget about, has resurfaced from the bottom of the penny stocks and scam moneys exchanges? In a market dominated by big whales, one might wonder what makes them so cascade classes?
Let's go back a bit and we will discover that some of these resurgences are contemporary balance sheet closures or quarterly closures. Now, among the big whales, it is investment funds, it is ratchets, trigger thresholds: frankly, 5,000 on March 31 against 3,500 on December 31, it's prettier than the 3,000 to which one s was moving slowly. It will tell the effect "Wahoo" of a 30% increase in three days!
This could only impress the hard-core speculators, the shortists who rushed to redeem themselves! Can we imagine something less sinister than these manipulations of course (which are still the subject of investigations so far they gave rise to suspicion)?
The rise in bitcoin could reflect the fact that the US Federal Reserve (Fed) has halted its policy of raising interest rates, loosening financial cost constraints on hedge funds specializing in encrypted currencies and initial coins offerings (ICO), these cryptocurrency fundraisers. This new environment, in addition to the disappearance of many of them, would have reduced the selling pressure.
ICO peak?
Add the bitcoin request as part of a restart of the ICO. We know that in the United States these can be subscribed by exchange between the currency of the ICO and another encrypted currency, wider and more known, such as bitcoin. We know that ICOs were launched with considerable fundraising goals. We know that to make the most of it, it is better to be part of the "early adopters".
We could imagine
