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Bitcoin and other cryptocurrencies rose on Tuesday, August 1st after another slight price drop. The new price move came after a surprise move by Fitch Ratings, which downgraded the US, dropping the rating from AAA to AA+.
The move was followed by a high-profile fight against the debt ceiling earlier in the year when the US narrowly avoided a default. Fitch justified his move with the “expected deterioration in the financial situation” and offered a negative forecast for the future of the US economy.
Bitcoin responded to the move by surging over 2% in the past 24 hours.
Previously, bitcoin also surged suddenly when the US Federal Reserve announced its latest rate hike, making it unclear if this would be the last time interest rates were raised.
Yuya Hasegawa, an analyst at crypto exchange Bitbank, said:
Damage to the central government’s creditworthiness could increase demand for decentralized, stateless currency.
A new set of developments has allowed stocks to post gains over the past few weeks while Bitcoin has languished in historic stagnation for the same period.
However, Bitcoin has not responded to positive catalysts for the stock market, while it has responded quite positively to negative catalysts.
Bitcoin price bounces back to $30,000
Before the Fitch rating downgrade, Bitcoin had been oscillating between support at $29,000 and resistance at $29,500 for seven days. Yesterday, August 1st, the support was finally broken, causing the asset to fall to a 1-month low of $28,750.
Following Fitch’s announcement, bitcoin price skyrocketed, going from $28.75k to $30k in a matter of hours. Since then, the price has corrected again as the bulls lost momentum and fell to $29,500, which is the current support.
Michael van de Poppe, the founder and CEO of Eight said, “I would like to see LTF hold $29.3k and then break clear of $30k.”
Well, that’s what happened with #Bitcoin.
I would like to see the LTF stay at $29.3k and then break the $30k level clearly. pic.twitter.com/toPD3GI19E
— Michaël van de Poppe (@CryptoMichNL) August 2, 2023
Another analyst expressed optimism by saying that the coin broke out of a falling wedge pattern. They see great potential in this, despite the moderate volume. It’s rare for Bitcoin to break a bearish pattern, so the fact that it did is taken as an auspicious sign.
Another analyst pointed out that Bitcoin’s recent surge has completed a W pattern and the daily candle is looking very strong thanks to purchasing power. However, after the bulls failed to sustain the momentum, the price declined and the coin failed to break the resistance at $30,000.
Bitcoin Lightning on the Coinbase agenda
One positive development that could help sustain Bitcoin above $29,000 is confirmation that Coinbase intends to support the Bitcoin Lightning Network.
The confirmation came directly from the exchange’s CEO, Brian Armstrong, who said Coinbase intends to use it to fuel the adoption of crypto payments globally.
The next step for crypto is to make payments worldwide instant and free.
This will require a lot of work from all of us, including Coinbase, Layer 2 integration, better on-ramps, easier UX/onboarding, etc.
A magic limit would be to get the average payment under 1 cent… https://t.co/IDWTHsZNUq
— Brian Armstrong 🛡️ (@brian_armstrong) July 26, 2023
The confirmation came after Microstrategy founder Michael Saylor and Square CEO Jack Dorsey questioned Armstrong’s vision for global crypto payments. Armstrong responded that crypto’s next step is to make payments worldwide instant and free.
Why do you keep ignoring Bitcoin and Lightning?
Which “Cryptocurrency” is a Better Money Transfer Protocol and Why?
— Jack (@jack) July 26, 2023
Dorsey admitted that Coinbase has attracted more people to Bitcoin than probably any other company in the world. However, he emphasized that the community wants an open protocol for money transfers that no individual, company or government can control.
Undoubtedly, Coinbase has introduced more people to Bitcoin than anyone else. And for that I am grateful.
It would be great to put more of your resources into your original focus on Bitcoin and Layer 2 technologies and we’d love to work with you.
We want an open protocol for money…
— Jack (@jack) August 2, 2023
Wall Street Memes hits another milestone by raising $20 million
With bitcoin price uncertain, traders are turning to popular new meme coins, Wall Street Memes.
The token, which is still on pre-sale, recently hit a massive milestone by raising over $20.2 million. As of this writing, WSM tokens are selling for $0.0328 per token.
The current phase will continue for five more days, then the price will rally to $0.0331. Those who want to join the hype surrounding the token can buy it with ETH, BNB, USDT, or by credit or debit card.
Wall Street Memes was inspired by a subreddit called WallStreetBets that caught the attention of the financial industry in early 2021. At the time, the community participated in a campaign to increase the share price of GameStop and several other companies targeted by institutional investors.
Institutions shorted their shares to make profits, threatening to plunge companies into financial collapse. Redditors’ intervention protected the companies, and two years later, Wall Street memes emerged to commemorate their efforts.
Related:
Wall Street Memes – The Next Big Cryptocurrency
- Early Access pre-sale now live
- Established community of stock and crypto traders
- Featured on BeInCrypto, Bitcoinist, Yahoo Finance
- Ranked as the best cryptocurrency to buy in the meme coin sector
- Team behind the OpenSea NFT Collection – Wall St Bulls
- Tweets replied to by Elon Musk
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