Cryptocurrency Market Update: Is It Time to buy Bitcoin? – Mike Novogratz
|- Time to buy Bitcoin even as the FED keeps printing money to cushion the US economy from COVID-19 shocks.
- Bitcoin price 21 million maximum supply remains the biggest attraction.
- Bitcoin price risks diving to retest $5,800 support if $6,200 gives in to the growing selling pressure.
The CEO of Galaxy Digital Michael Novogratz remains optimistic that this is the time to buy Bitcoin. In a message sent via Twitter to his followers, Novogratz simply tells them to “Buy BTC.” With a touch of sarcasm, the Bitcoin evangelist said that “money grows on trees in 2020.”
It is clear that money doesn’t grow on trees. Most of us know this as one of the life lessons delivered to us by our parents when growing up. The saying was used to pass the message to children that money is a scars commodity and cannot be misused.
However, this old adage has lost meaning for the United States Federal Reserve Bank and other central banks around the world as they keep printing money in order to cushion their economies from the shocks of the COVID-19 pandemic.
Many analysts and cryptocurrency enthusiasts have remained adamant that 2020 will be the year for Bitcoin. Not even the recent 50% crash has slowed down their messages that it’s time to buy Bitcoin. Unlike fiat currency, Bitcoin has a maximum supply of 21 million coins. This limited supply, according to Novogratz is the biggest attraction to Bitcoin.
Bitcoin price update
At the time of writing, Bitcoin is trading at $6,311. The digital asset has adjusted from $6,437 (intraday high). Moreover, the price is 1.76% lower from the opening value of $6,423. A couple of support areas have caved in to the constantly increasing selling activities including $6,400 and $6,200. It is essential that $6,200 buyer congestion hold to avert losses that could retest the next support target at $5,800.
Unlike Bitcoin, the other top three cryptocurrencies; Ethereum and Ripple are holding above key support areas at $130 and $0.17 respectively. Ethereum is trading at $132.13 after a 0.76% fall on the day while Ripple is teetering at $0.1723 following a subtle 0.89% loss. The entire crypto market is bearish with most digital assets recording losses between 0.5% and 3%.
Chart of the day: BTC/USD 4-hour chart
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