There have been predictions and chatter about the future of Bitcoin (BTC) as the end of summer rolls by. Historically, September has been a weak month for the crypto space with most of the assets witnessing massive price reductions.
The latest development around Bitcoin is that a Bitcoin Whale Address has become active for the first time in nine years and has moved 5,000 Bitcoins, worth $100 million, to the crypto exchange Kraken. A popular crypto reporter Colin Wu cited data from OKLink and wrote:
“The Bitcoin whale address (18xGHNrU26w6HSCEL8DD5o1whfiDaYgp6i ) transferred out 5000.01 BTC at 04:50:38 (UTC+8) on September 5th to the Kraken, which is worth about $100m now. The wallet was created and bitcoins were transferred to this address in 2013.”
After the U.S. unemployment report was released last week, Bitcoin continued to remain under pressure. Bitcoin has been trading below $20,000 for the ninth consecutive day, barely managing to hold above $19,511. This price point was also the peak in December 2017 and could continue acting as a crucial support for BTC going forward.
On Sunday, September 4, Gavekal Research published a report which stated:
“The Fed is busy ‘burning’ money as well (a.k.a. quantitative tightening) to restore the credibility of the US dollar. That presents a significant headwind for all cryptocurrencies.”
The Bitcoin Lightning Network
Last week, the Bitcoin Lightning Network capacity touched an all-time high of approximately 5,000 BTC. This Network is a Layer-2 scalability solution for the Bitcoin network that makes transactions faster and cheaper.
Interestingly, Michal Saylor’s MicroStrategy has been working to bring on board a greater number of users to the Lightning Network. On Saturday, September 3, Saylor spoke at the Baltic Honeybadger conference in Riga, Latvia. He called this network “the most important thing going on in the world of technology.”
Saylor also added, “MicroStrategy has got some R&D projects going on right now where we’re working on enterprise applications of Lightning: enterprise Lightning wallet, enterprise Lightning servers, enterprise authentication.”
He informed the audience that this step would enable companies to “roll out Lightning to a hundred thousand employees every day”. It would also be possible to open 10 million Lightning wallets overnight, he mentioned.
How has The Crypto Summer Treated Bitcoin?
Crypto summer is generally defined as the period between the start of June till the end of August. The last two monthly candles of Bitcoin were almost identical, with the only difference being, of course, the color- July’s was green and August’s was red.
In July, Bitcoin experienced a volatile trade.
It was around $19.9K in the beginning, hit a monthly low of about $18.8K, peaked at about $24.7K, and winded up at around $23.3K.
August was no relief- Bitcoin started at around $23.3K in August, sank to $19.6K, climbed as high as $25.2K, and ended the month around $20.0K.
However, the entire summer wasn’t this terrible- June went relatively well. Bitcoin opened the month by trading at about $31.8K.