On Tuesday, November 9, BTC updated its previous historic high. From now on, every rise in value will mean setting a new record. Yesterday, the quote fell by $3,500 from the previous daily close but managed to reach a new high at the same time. This means that markets continue to purchase the coin, fearing higher inflation in the US. Indeed, the situation in the US is alarming. It was reported yesterday that the country's inflation rate soared to 6.2%. Amid the news, traders rushed to purchase BTC. The bullish trend in the crypto market is likely to continue for several months. At the same time, it is hard to predict how long inflation in the US is going to speed up. Jerome Powell has repeatedly insisted that it is temporary. However, prices in the US keep surging. Meanwhile, markets continue to build up their risk appetite, hoping to hedge inflation.
BoE's Andrew Bailey lashes out at BTCIn his recent speech, BoE Governor Andrew Bailey addressed the issue of bitcoin instead of focusing on monetary policy, inflation, or the labor market. Notably, the flagship cryptocurrency has already provoked criticism from central banks before. Indeed, financial watchdogs cannot stand the fact that they are unable to control or issue digital money. So, we will definitely hear regulators lashing out at bitcoin in the future. Meanwhile, Bailey sees bitcoin as a tool for illegal transactions, terrorist financing, money laundering, and tax evasion. "I'm afraid that the advent of digital means of payment, and in particular crypto assets, I'm afraid that the evidence suggests, and we see this, is that it is providing another means of payment for people who want to conduct criminal activity," he said. At the same time, his words could be interpreted as the willingness of central banks to maintain control over cryptocurrencies. After all, if crypto assets were controlled and regulated by central banks, there would be fewer problems, and more stability and responsibility. On the one hand, Bailey is right, and the lack of regulation poses serious risks for investors who are not protected from fraudulent activities or the high volatility of virtual currencies. On the other hand, bitcoin is growing despite all these concerns.
In recent weeks, BTC has been traded steadily in the range. Eventually, however, the bullish trend resumed as seen from the chart. Thus, the instrument went above the high of the supposed Wave 3. On the chart, there is now an impulsive 5-wave structure that began to form on July 20. If so, Wave 5 is now building up within this structure. At the same time, even such a clear structure raises doubt. Firstly, Wave 4 may acquire a 3-wave form as Wave 2 did. Lastly, the wave structure forming since September 21 may appear to be Wave 3. If so, Waves 4 and 5 could start to form later. Therefore, there could be just one conclusion: BTC is now located too high to be bought. So, market participants should be very cautious when going long. At the same time, if Wave 3 is now forming, bitcoin could soar to $100,000 in the next 2-3 months.