Bitcoin started the week on shaky ground after bears pushed it below the critical support level around $6,750. As BeInCrypto previously reported, a decrease below $6,800 could potentially trigger a rapid breakdown.
With the price likely to move downward towards $6,300, the short-term outlook is pretty bearish for the benchmark cryptocurrency at this juncture. Interestingly, this would be consistent with a recent forecast by Morgan Creek partner, Jason Williams, who believes Bitcoin is going to head lower into halving before eventually hitting an all-time-high around Sept 2020.
On that note, let’s quickly skim through some of the biggest new developments to have transpired in the cryptocurrency space over this past weekend.
Let Billionaires and Hedge Funds Get ‘Wiped Out,’ Says Bitcoin Bull
Social Capital CEO Chamath Palihapitiya said in a conversation with CNBC that America’s billionaires should not get a bailout from taxpayers. Instead, they should expect to face the consequences of the current economic crisis just like everyone else.
Palihapitiya stressed that there was ‘a lie perpetuated by Wall Street’ that when a corporation fails it necessarily fires all its workers. In fact, as Palihapitiya argues, most bankruptcies end up simply getting reacquired.
Palihapitiya’s take on the issue went viral on social media shortly after, indicating that he may have struck a chord with the popular sentiment in the country and beyond.
Bitcoin SV’s Roadmap Is Now Password Protected
Things are looking kind of shaky in the Bitcoin SV ecosystem following its first halving last week. The halving was supposed to be the most important event for the BSV network, but it passed with little fanfare. With the hash rate going down and no real long-term strategy, BSV finds itself in a serious bind.
Making things even worse for investors, the controversial digital asset has now restricted access to its roadmap, rendering users unable to view what its future plans are now — assuming its creators even had a long-term strategy, to begin with.
[Editor’s Note: Accessing the link now takes you to a ‘new roadmap’ section with no password protection. It’s unclear whether this was a bug that happened during an update, or if the Bitcoin SV team walked back on the decision after it was met with criticism.]
Novogratz Proposes Govt-Linked Crypto Wallets, Industry Retorts, ‘No Way!’
Galaxy Digital chief and long-term Bitcoin bull Mike Novogratz recently stirred up controversy on Twitter by proposing that everyone should ‘have a digital wallet that is linked to both local, state, and the federal government.’
The ongoing COVID-19 crisis and its ramifications on the economic front have further underlined this need, he noted.
As you would expect, his take on the issue didn’t go down well with most of his followers and industry peers.
Bitcoin Hashrate Dominance Suggests Forks are Significantly Overvalued
Bitcoin Cash, the blockchain that forked from Bitcoin in August 2017, is priced above $230. Meanwhile, Bitcoin SV, the controversial hard fork of Bitcoin Cash championed by Craig Wright and Calvin Ayre, has a market capitalization of just $3.35 billion and a price of $182.
However, according to industry analyst Bitcoin Meme Hub (@BitcoinMemeHub), the above prices are a significant overvaluation.
Bitcoin Analyst Trashes the Stock-to-Flow Model as a Useless Tool for Price Prediction
As you may know, the stock-to-flow (S2F) model is the underlying force powering most bullish post-halving predictions for Bitcoin. However, the commonly-held view that a massive bull run will follow the Bitcoin halving in 2020 may not necessarily be accurate. BeInCrypto readers probably remember a report from January of this year where researchers pointed out that the 2020 Bitcoin halving won’t pack enough punch to pump price.
Now, a similar assessment has been made by another analyst who claims that the S2F model’s use is out of place with Bitcoin.
Litecoin Approaches Crucial Long-Term Support Level
The LTC price has broken down from its short-term pattern and is expected to continue decreasing until it reaches clear support. However, the price is still trading inside a long-term support area. As long as it stays above, the current decrease is not considered a breakdown from the long-term trend.