In the whirlwind realm of cryptocurrency, current market conditions indicate an impending stall for Bitcoin, as the famed cryptocurrency continues to tread water around the familiar $30,000 mark. According to Coinglass data, the market is showing more long liquidations than short, indicating a possible waiting game for potential price boosts expected later in the year. If a recovery does spark in the fourth quarter as predicted by Bybit’s experts, a full bull market is not anticipated until 2024.
Yet such a recovery is dependent on not just one, but a trifecta of factors: a halt on rate hikes, Bitcoin halving, and clearing of regulatory storms. To make things more convoluted, Tim Frost, CEO of digital wealth platform Yield App, brushed off a recent report from Standard Chartered predicting Bitcoin to soar to $120,000 by the end of next year. He emphasized the current bear-like state might be deceiving with Bitcoin’s steady hold at $30,000 from a start of $16,540 this year. Frost predicts a potential bull market in 2024, following a period of continued market consolidation and significant crypto innovations behind the scenes.
Amidst the uncertainties, these predictions are not supported by all. Jeremy Allaire, CEO of Circle, called for the creation of a Yuan-pegged stablecoin over a Central Bank Digital Currency (CBDC). However, without free convertibility of Yuan, a core fundamental of Beijing’s monetary policy, neither seems to be in the cards at this time. China’s People’s Bank maintains strict control of the national currency’s exchange rate, discouraging the Yuan from floating freely in international markets, in an effort to regulate its export prices and domestic economy.
For China’s currency aspirations to align with the characteristics of other international currencies, it would require “fully and freely mobile capital, full capital account liberalization, full convertibility of exchange rate” according to Gita Gopinath, First Deputy Managing Director at the IMF. Unfortunately, this clashes with China’s current stance.
As a further twist, Taiwan and China have a surprisingly similar currency narrative – neither want to relinquish control of their currency. As the saga continues to unfold, the central theme revolves around the tug-of-war between control and globalization. With this fundamental tension, it remains to be seen how the crypto market will navigate through the uncharted waters of international economies and their monetary policies.
Source: Coindesk
