{"id":87190,"date":"2020-10-12T11:03:48","date_gmt":"2020-10-12T08:03:48","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/dollar-dip-meets-hash-rate-boom-5-things-to-watch-in-bitcoin-this-week\/"},"modified":"2020-10-12T11:03:48","modified_gmt":"2020-10-12T08:03:48","slug":"dollar-dip-meets-hash-rate-boom-5-things-to-watch-in-bitcoin-this-week","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/dollar-dip-meets-hash-rate-boom-5-things-to-watch-in-bitcoin-this-week\/","title":{"rendered":"# Dollar dip meets hash rate boom: 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-6a3d53802c7b1\" 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-6a3d53802c7b1\" 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\/dollar-dip-meets-hash-rate-boom-5-things-to-watch-in-bitcoin-this-week\/#US_election_could_send_dollar_back_to_2018\" >U.S. election could send dollar back to 2018<\/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\/dollar-dip-meets-hash-rate-boom-5-things-to-watch-in-bitcoin-this-week\/#Europe_battles_Brexit_and_coronavirus\" >Europe battles Brexit and coronavirus<\/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\/dollar-dip-meets-hash-rate-boom-5-things-to-watch-in-bitcoin-this-week\/#Hash_rate_high_leads_Bitcoin_fundamentals\" >Hash rate high leads Bitcoin fundamentals\u00a0<\/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\/dollar-dip-meets-hash-rate-boom-5-things-to-watch-in-bitcoin-this-week\/#Sentiment_consolidates\" >Sentiment consolidates<\/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\/dollar-dip-meets-hash-rate-boom-5-things-to-watch-in-bitcoin-this-week\/#%E2%80%9CWere_going_much_higher%E2%80%9D\" >\u201cWe\u2019re going much higher\u201d<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Dollar dip meets hash rate boom: 5 things to watch in Bitcoin this week  <\/strong>&#8221;<\/p>\n<div data-v-17f60ba6=\"\">Bitcoin (BTC) starts the week above $11,000 as fresh gains continue to hold \u2014 is $12,000 next or will bears gain control?<\/p>\n<p>Cointelegraph takes five factors that could help decide whether this week is bullish or bearish for BTC price action.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"US_election_could_send_dollar_back_to_2018\"><\/span>U.S. election could send dollar back to 2018<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin remains sensitive to macro phenomena as Q4 continues, and the U.S. election run-up could produce noticeable turbulence.<\/p>\n<p>The outcome of a Democratic win looks bleak for one macro indicator in particular: the U.S. dollar currency index (DXY), analysts say.<\/p>\n<p>In a report on Oct. 12 quoted by <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-10-12\/goldman-says-short-dollar-as-odds-firm-for-biden-win-vaccine\">Bloomberg<\/a>, Goldman Sachs warned that Joe Biden entering the White House could spook markets in advance, driving DXY down to its lows from 2018.\u00a0<\/p>\n<p>Bitcoin has historically seen strong inverse correlation with DXY, and fresh lows could thus be a boon for hodlers. In August, $12,500 highs for BTC\/USD came in tandem with DXY dipping to just above 92 points. 2018 saw a dive to 89 \u2014 4% lower than at present.<\/p>\n<p>In addition, the roll-out of a coronavirus vaccine would serve to hinder, rather than help dollar strength.<\/p>\n<p>\u201cThe risks are skewed toward dollar weakness, and we see relatively low odds of the most dollar-positive outcome \u2014 a win by Mr. Trump combined with a meaningful vaccine delay,\u201d Goldman strategists wrote.<\/p>\n<p>\u201cA \u2018blue wave\u2019 U.S. election and favorable <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> on the vaccine timeline could return the trade-weighted dollar and DXY index to their 2018 lows.\u201d<\/p>\n<p>Last week, Cointelegraph reported an opinion that, regardless of who wins in November, safe havens will win thanks to the election result, with one analyst eyeing a $4,000 price target for gold.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.eu-central-1.amazonaws.com\/s3.cointelegraph.com\/uploads\/2020-10\/f0f84797-55c5-41d9-b99f-463f2f3e3a01.png\"\/><figcaption style=\"text-align: center;\">U.S. dollar currency index six-month chart. Source: <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/TVC-DXY\/\">TradingView<\/a><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Europe_battles_Brexit_and_coronavirus\"><\/span>Europe battles Brexit and coronavirus<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Regarding the coronavirus, fresh restrictions coming in across Europe are set to produce more economic concerns.\u00a0<\/p>\n<p>With the \u201csecond wave\u201d seemingly firmly underway, various countries are seeking to enact repeated lockdown-style measures this week.\u00a0<\/p>\n<p>Amid the turmoil, last-minute Brexit negotiations are adding to the headache for the United Kingdom, with a deadline for reaching some form of consensus on exiting the European Union now just days away.<\/p>\n<p>In the U.S., politicians have still failed to agree on a new stimulus package, which Americans are eagerly anticipating after Treasury Secretary Steven Mnuchin confirmed the issuance of a second $1,200 stimulus check.<\/p>\n<p>Despite the gloom, stocks are up, with S&amp;P 500 futures gaining 0.25% prior to the open on Monday. Leading the way is China, where a weakening yuan and investors hopeful that an upcoming speech from president Xi Jinping will serve to entice more foreign investment.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.eu-central-1.amazonaws.com\/s3.cointelegraph.com\/uploads\/2020-10\/0d87165f-0e9c-4762-ad20-90ad16b07376.png\"\/><figcaption style=\"text-align: center;\">Bitcoin vs. S&amp;P 500 three-month chart. Source: Skew<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Hash_rate_high_leads_Bitcoin_fundamentals\"><\/span>Hash rate high leads Bitcoin fundamentals\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Not so gloomy are Bitcoin\u2019s network fundamentals this week. Depending on the metric used, hash rate hit new all-time highs over the weekend, suggesting that more computing power than ever is being dedicated to mining.\u00a0<\/p>\n<p>According to data from monitoring resources <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/bitinfocharts.com\/comparison\/hashrate-btc-sma7.html#3m\">Bitinfocharts<\/a> and <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.blockchain.com\/charts\/hash-rate\">Blockchain<\/a>, hash rate hit 155 exahashes per second (EH\/s). 130 EH\/s marked a tenfold increase versus when BTC\/USD hit its record highs of $20,000 in December 2017.<\/p>\n<p>Hash rate is difficult to measure precisely, and different tools produce different results, but the trajectory is clear: Bitcoin miners are bullish.<\/p>\n<p>As Cointelegraph often reports, a popular theory suggests that highs in hash rate and jumps in network difficulty tend to produce Bitcoin price rises later on.\u00a0<\/p>\n<p>\u201cThe correct hashrate-adjusted price for #Bitcoin right now is <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>rox. $32,000 per coin,\u201d Max Keiser, one of the theory\u2019s main proponents, <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/maxkeiser\/status\/1314222866360135680\">commented<\/a> last week.\u00a0<\/p>\n<p>\u201cOnce we get through this 2018 supply overhang and legacy exchange wash-trading supply glut we\u2019ll see new ATH.\u201d<\/p>\n<p>Difficulty has yet to show signs that it will follow hash rate to new records in the short term \u2014 estimates on Monday showed that the next readjustment will be neither up nor down, just like the last.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.eu-central-1.amazonaws.com\/s3.cointelegraph.com\/uploads\/2020-10\/5428fbe5-c3d1-4fad-a04d-8216983715f9.png\"\/><figcaption style=\"text-align: center;\">Bitcoin seven-day average hash rate one-month chart. Source: Blockchain<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Sentiment_consolidates\"><\/span>Sentiment consolidates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investor sentiment is slowly firming up when it comes to Bitcoin, 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>.\u00a0<\/p>\n<p>Data from the market indicator shows that after August sparked warnings of overexuberance, a subsequent dip is now balancing.<\/p>\n<p>On Monday, the Index was at 52, having passed the 50 mark for the first time since Sep. 21 over the weekend.<\/p>\n<p>That puts investor sentiment in \u201cneutral\u201d territory \u2014 a relief compared to the \u201cextreme greed\u201d of August and the \u201cfear\u201d that followed.\u00a0<\/p>\n<p>The Index aims to show when a market sell-off is due, typically the closer its score gets to the top of its scale from zero to 100.\u00a0<\/p>\n<p>Volatility, market momentum and volume make up half of the weighted basket of factors which produce the score.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.eu-central-1.amazonaws.com\/s3.cointelegraph.com\/uploads\/2020-10\/c6bf45ba-ed04-4efa-9645-47b98e751749.png\"\/><figcaption style=\"text-align: center;\">Crypto Fear and Greed Index three-month chart. Source: Alternative.me<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"%E2%80%9CWere_going_much_higher%E2%80%9D\"><\/span>\u201cWe\u2019re going much higher\u201d<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Lastly, despite few expecting its sudden push above $11,000, Bitcoin pundits are betting on further gains.<\/p>\n<p>As noted by Cointelegraph Markets analysts among others, the area around $11,000 previously formed a key area to break, with $10,800 acting as a \u201cpivot\u201d point which could propel the market higher once reclaimed.<\/p>\n<p>In the event, BTC\/USD took $10,800 and another important level, $11,150, in its stride, sealing daily and weekly closes above that level and closer to $11,400.\u00a0<\/p>\n<p>This came despite a mixed bag of news, which included the arrest of senior executives at derivatives giant BitMEX.<\/p>\n<p>For some well-known names, the bullish mood is palpable.<\/p>\n<p>\u201cWe&#8217;re going much higher. You have been warned,\u201d researcher Vijay Boyapati tweeted on Sunday.<\/p>\n<p>Meanwhile, a <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoMichNL\/status\/1315371603493113858\">survey<\/a> from Cointelegraph Markets\u2019 Micha\u00ebl van de Poppe saw over 60% of 4,000 respondents bet on $12,000 appearing before $10,700 \u2014 below the pivot level.\u00a0<\/p>\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 News 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\/dollar-dip-meets-hash-rate-boom-5-things-to-watch-in-bitcoin-this-week\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Dollar dip meets hash rate boom: 5 things to watch in Bitcoin this week &#8221; Bitcoin (BTC) starts the week above $11,000 as fresh gains continue to hold \u2014 is $12,000 next or will bears gain control? Cointelegraph takes five factors that could help decide whether this week is bullish or bearish for BTC&#8230;<\/p>\n","protected":false},"author":1,"featured_media":87191,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.eu-central-1.amazonaws.com\/s3.cointelegraph.com\/uploads\/2020-10\/9fb8840a-1352-4e06-8409-d53de9e19872.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74863,73785],"class_list":["post-87190","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-cryptocurrencies","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/87190","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=87190"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/87190\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/87191"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=87190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=87190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=87190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}