{"id":108038,"date":"2020-11-09T12:00:00","date_gmt":"2020-11-09T09:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/btc-supply-squeeze-and-biden-5-things-to-watch-in-bitcoin-this-week\/"},"modified":"2020-11-09T12:00:00","modified_gmt":"2020-11-09T09:00:00","slug":"btc-supply-squeeze-and-biden-5-things-to-watch-in-bitcoin-this-week","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/btc-supply-squeeze-and-biden-5-things-to-watch-in-bitcoin-this-week\/","title":{"rendered":"# BTC supply squeeze and Biden: 5 things to watch in Bitcoin this week"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a95c7a11e0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a95c7a11e0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/btc-supply-squeeze-and-biden-5-things-to-watch-in-bitcoin-this-week\/#US_election_frenzy_starts_to_bite\" >U.S. election frenzy starts to bite<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/btc-supply-squeeze-and-biden-5-things-to-watch-in-bitcoin-this-week\/#Coronavirus_mayhem_throttles_Europe\" >Coronavirus mayhem throttles Europe<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/btc-supply-squeeze-and-biden-5-things-to-watch-in-bitcoin-this-week\/#Fear_Greed_Index_hits_danger_zone\" >Fear &amp; Greed Index hits danger zone<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/btc-supply-squeeze-and-biden-5-things-to-watch-in-bitcoin-this-week\/#%E2%80%9CLevels_to_watch_13700-14100_12800-13200_and_11500-12000_If_the_market_starts_to_correct%E2%80%9D\" >\u201cLevels to watch; $13,700-14,100, $12,800-13,200 and $11,500-12,000 If the market starts to correct.\u201d<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/btc-supply-squeeze-and-biden-5-things-to-watch-in-bitcoin-this-week\/#Institutions_stay_record_long_BTC\" >Institutions stay record long BTC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/btc-supply-squeeze-and-biden-5-things-to-watch-in-bitcoin-this-week\/#Bitcoin_supply_shortage_boosts_prospects\" >Bitcoin supply shortage boosts prospects<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># BTC supply squeeze and Biden: 5 things to watch in Bitcoin this week <\/strong>&#8221;<\/p>\n<div data-v-5a136f3a=\"\">Bitcoin (BTC) is starting what will be likely a hectic week for markets as the United States begins its two-month presidential transition.<\/p>\n<p>After Joe Biden was declared the projected winner of the U.S. presidential elections during the weekend, Bitcoin fell, but managed to avoid major losses \u2014 what\u2019s next?<\/p>\n<p>Cointelegraph takes a look at the factors set to influence BTC price action over the coming week. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"US_election_frenzy_starts_to_bite\"><\/span>U.S. election frenzy starts to bite<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Attention remains firmly fixed on Washington as the aftermath of a highly contentious election begins to play out. <\/p>\n<p>Experts had warned that market volatility was all but guaranteed once the result was in. Since this occurred over the weekend, Monday\u2019s Wall St. open will be a source of interest for market participants. <\/p>\n<p>At press time, Japan was leading the gains, with its stock market hitting a 29-year high on what the press is calling the \u201cBiden bounce.\u201d<\/p>\n<p>Bitcoin, on the other hand, has stopped short of continuing last week\u2019s gains and at one point hit $14,400 \u2014 $1,590 off its recent peak. Since then, BTC\/USD has rebounded considerably, circling $15,250 at press time Monday.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/cb3b7c7e-499f-4a4e-8f2d-460abd693889.png\"\/><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-week chart. Source: <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSD\/\">TradingView<\/a><\/em><\/figcaption><\/figure>\n<p>Incumbent president Donald Trump has vowed to challenge vote counts and could yet cause further issues for Biden, leading to confusion over policy, which could yet rattle sentiment. <\/p>\n<p>Zooming out, however, analysts frequently argue that in the long run, Bitcoin and gold as safe havens will ultimately win from the election, regardless of which candidate leads the U.S. going forward. The reason, among other things, is inflation. <\/p>\n<p>As Cointelegraph reported, a speech last week by Jerome Powell, chair of the Federal Reserve, saw demands for further financial stimulus to enter the U.S. economy, raising debt and debasing the dollar.<\/p>\n<p>\u201cBitcoin is the dominant crypto network &#8211; engineered to host the ideal safe haven asset &amp; preserve monetary energy over long periods of time without power loss,\u201d <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/michael_saylor\/status\/1325650239999578112\">Michael Saylor<\/a>, CEO of MicroStrategy, summarized in a tweet on Monday. <\/p>\n<blockquote><p>\u201cThat makes #BTC the solution to every investor\u2019s store of value problem. Few understand this.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Coronavirus_mayhem_throttles_Europe\"><\/span>Coronavirus mayhem throttles Europe<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Accompanying the election fallout is the continued turmoil over nation states\u2019 handling of the Coronavirus.<\/p>\n<p>Europe and the U.S. have recently diverged in this respect, with the former succumbing to a wave of new lockdown measures that have met with considerable pushback from the population. <\/p>\n<p>After showing off buoyant recovery statistics for Q3, many governments will soon be drawing another altogether less savory picture of their economies for Q4 as economic activity dives for a second time in 2020. <\/p>\n<p>This opens up the possibility of history repeating itself for Bitcoiners. After March\u2019s cross-asset crash and first lockdowns, Bitcoin bounced back from $3,600 to circle five figures in under two months.<\/p>\n<p>As governments themselves repeated the controversial responses to the virus, analysts were already forecasting a strong year for Bitcoin in 2021. Among them, as Cointelegraph reported, Real Vision CEO Raoul Pal and Gemini exchange co-founder Tyler Winklevoss both predicted a new all-time high for BTC by Q1 next year.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Fear_Greed_Index_hits_danger_zone\"><\/span>Fear &amp; Greed Index hits danger zone<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In terms of current investor sentiment, however, warning bells are sounding as Bitcoin stays above $15,000.<\/p>\n<p>According to the <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/alternative.me\/crypto\/fear-and-greed-index\/\">Crypto Fear &amp; Greed Index<\/a>, which measures market sentiment using a basket of factors, a correction is more than overdue.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"\/><\/p>\n<p>Compiled as a score out of 100, the Index reached its highest reading since June 2019 on Monday \u2014 the time when Bitcoin circled its yearly highs of $13,800.<\/p>\n<p>For Comparison, two weeks ago, the Index measured under 60 \u2014 firmly \u201cneutral\u201d territory \u2014 before the latest price rises upended sentiment.<\/p>\n<p>The closer its score is to 100, the more likely it is that the market will correct thanks to a wave of selling, dragging the price down. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/d898b88f-472a-42f3-8da9-a11f7da9b738.png\"\/><figcaption style=\"text-align: center;\"><em>Crypto Fear &amp; Greed Index historical chart. Source: Alternative.me<\/em><\/figcaption><\/figure>\n<p>Noting the Index on Friday, Cointelegraph Markets analyst Micha\u00ebl van de Poppe advised <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> followers that he was eyeing a market entry point as low as $11,600.<\/p>\n<p>\u201cDecent weekly close, but below $16,000,\u201d he <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoMichNL\/status\/1325697051137544197\">added<\/a> on Monday. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"%E2%80%9CLevels_to_watch_13700-14100_12800-13200_and_11500-12000_If_the_market_starts_to_correct%E2%80%9D\"><\/span>\u201cLevels to watch; $13,700-14,100, $12,800-13,200 and $11,500-12,000 If the market starts to correct.\u201d<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin closed Sunday with its third-highest weekly close in history.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Institutions_stay_record_long_BTC\"><\/span>Institutions stay record long BTC<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite the volatile conditions of the past week, however, the weekend managed to avoid a significant \u201cgap\u201d opening up in Bitcoin futures markets.<\/p>\n<p>These \u201cgaps\u201d <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ear when the end of one futures trading session is markedly different in price to the start of the next after a weekend. <\/p>\n<p>Bitcoin has traditionally risen or fallen from its Monday position to revisit, or \u201cfill,\u201d such gaps. This weekend provided only a small one \u2014 between $15,455 and $15,635 \u2014 and BTC\/USD moved quickly to fill it in early Monday trading. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/f86f09b1-08fa-49e7-b895-d87b93514b58.png\" alt=\"\" title=\"\"\/><figcaption style=\"text-align: center;\"><em>CME Bitcoin futures chart showing latest gap. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>CME Group\u2019s Bitcoin futures meanwhile have seen record open interest in recent days, hitting $934 million on Friday with $764 million daily trading volume.<\/p>\n<p>Enthusiasm has been tempered, however, by the latest commitments of traders (COT) report released Friday, which showed hedge funds being record short BTC at current prices. <\/p>\n<p>At the same time, institutional investors remained record long, building on previous bullishness from late October. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/b55b1865-7a52-4f5a-b24f-66ed5352119c.png\"\/><figcaption style=\"text-align: center;\"><em>The latest COT report shows hedge funds record short and institutions record long BTC. Source: Skew<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_supply_shortage_boosts_prospects\"><\/span>Bitcoin supply shortage boosts prospects<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin\u2019s run to $16,000 meanwhile opened up an increasingly popular narrative, which predicts further price rises based on a surprisingly simple and well-known equation \u2014 supply and demand. <\/p>\n<p>After a wave of corporate buy-ins and increased sales from heavyweights such as payments network Square, attention is focusing on the fact that there is just not enough BTC on the market to satisfy incoming demand. <\/p>\n<p>The situation will likely be exacerbated by PayPal, analysts say, which already has a waiting list for Bitcoin buyers for when it begins offering cryptocurrency facilities early next year. <\/p>\n<p>Square alone, as Cointelegraph reported, already buys more BTC than miners produce. Going forward, the resulting supply squeeze can only realistically drive up the USD value of a Bitcoin.<\/p>\n<p>As <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/saifedean\/status\/1324901097409015808\">Saifedean Ammous<\/a>, author of the popular book, \u201cThe Bitcoin Standard,\u201d summarized on Saturday:<\/p>\n<blockquote><p>\u201cTwo ways to fix a money shortage:\u00a01- Central bank provides liquidity\u00a02- Number Go Up. There is no right or wrong way; there are consequences!\u201d<\/p><\/blockquote>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/btc-supply-squeeze-and-biden-5-things-to-watch-in-bitcoin-this-week\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# BTC supply squeeze and Biden: 5 things to watch in Bitcoin this week &#8221; Bitcoin (BTC) is starting what will be likely a hectic week for markets as the United States begins its two-month presidential transition. After Joe Biden was declared the projected winner of the U.S. presidential elections during the weekend, Bitcoin fell,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":108039,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/72c6105b-d7c1-464f-82ed-191d4c240f02.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,70288,73785],"class_list":["post-108038","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-elections","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/108038","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=108038"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/108038\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/108039"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=108038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=108038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=108038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}