“Bitcoin is down on news that August inflation was higher than expected (8.3% instead of 8.1%). Bitcoin should rise today. Its properties dictate that it should be inversely correlated with inflation. The fact that it’s down shows how early it is,” Tyler Winklevoss, co-founder of cryptocurrency exchange Gemini, wrote on Tuesday.
Cryptocurrencies: what do analysts think?
Pundits expect the rise of the leading digital currency to continue in the coming days and push the entire market as pointed by the RSI (Relative Strength Index), which is showing a bullish divergence on the daily time frame.
“This occurs when the price makes a lower low and the RSI indicator makes a higher high, which usually leads to a future uptrend,” explains Marcus Sotiriou, an analyst at GlobalBlock.
However, analysts remain cautious as the macroeconomic environment continues to cause fear among investors due to the European energy crisis.
What is the Bitcoin Lightning Network?
But while this news gives reason to the pessimists, the fundamentals of bitcoin are growing day by day, as the number of bitcoins in the lightning net continues to set all-time highs. There are almost 4,700 Bitcoin on the Lightning Network. Additionally, MicroStrategy announced Tuesday that it is working on solutions to bring millions of people onto the Lightning Network.
The Lightning Network is a scalability solution built on top of bitcoin, allowing users to quickly send and receive BTC with virtually no fees, “so if this is adopted globally, ‘crypto’ will have strong utility with a payment network,” says Sotiriou.
In the market, however, they are on alert due to the proximity of a possible “black swan” in September, which could take prices to the lowest in the year.
More cryptocurrency news
According to a crypto guru, Bitcoin will be the ideal investment to resist the onslaught of the Fed
A “black swan” appears for Bitcoin: what will happen to cryptocurrencies?
Cryptocurrencies: what taxes are paid for having Bitcoin or Ethereum
Source: Ambito
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