Binance Leaves Dutch Market
Perhaps the most important news this summer was the announcement from Binance that they will stop activities aimed at the Dutch market as of July 17. For us as crypto investors, this means that as of July 17 it will only be possible to withdraw crypto from your Binance account. Depositing or trading crypto has unfortunately no longer been possible since July 17. All this because of the inability to obtain a license from the DNB. However, Binance has expressed the hope of returning to the Dutch market in the future. Do you still have an account with Binance and want to transfer your crypto to another platform? We have written an article in which you can read how you can easily transfer crypto to the largest Dutch crypto platform Bitvavo.
Macro Economic Developments
On July 12, the US inflation figures were announced. From this we can deduce whether the current interest rate policy has the desired effect. This time it is extra important because a significant drop in inflation was expected in advance. From 4% to almost 3%. Ultimately, we saw that the actual figures were quite in line with the figures that had been expected in advance. This also had consequences for the Bitcoin price. This remained fairly stable above $30,000.
FOMC Meeting
On July 26, there was another FOMC meeting at which a new interest rate increase was on the agenda. Previously, the expectation was an increase of 25 BPS. Ultimately, we did indeed see an increase of 25 BPS. This also ultimately had little influence on the price of Bitcoin. It is interesting to reflect on this development. Inflation figures, unemployment figures and the current interest rate policy are all factors that give us insight into the current strength of the economy. The fact that interest rates are being raised again indicates that the economy is still perceived as strong. In principle, this is positive for price development in the short to medium term. When we see sharply falling inflation in combination with rising unemployment and falling interest rates, it is necessary to be alert. These would be signs that the economy is weakening.
Bitcoin Price Forecast
The price of Bitcoin has been consolidating for over a month within the price range of $29,500 and $31,400. Ultimately, we saw that the support zone around the range low could not hold, after which the price took a rapid dive towards 28,800. In principle this is a negative signal. And as long as the price is below the range low, we should be cautious about taking new positions. Nevertheless, we know from the past that deviations occur with some regularity after the price has started to move outside one of the ranges. These are short moments when the price moves outside a price range, and then continues within the range again. This puts traders on the wrong track. We must also be vigilant about this in this case. If the price starts to develop within the price range again in the short term, we can speak of a deviation. In that case, this is a good time to start taking new positions again.
