BITCOIN GETS SUPPORT FROM AN UNLIKELY SOURCE
February was a good month for bitcoin. Its price moved from a low of $5,817 to end the month above $10,000.
In the recent weeks however, the cryptocurrency has been in consolidation move with its price fluctuating between $11,744 and $9260.
The recent bullish move can be attributed to the lack of any major regulatory news from the leading countries like US, Japan, and the European Union.
A common argument against bitcoin and other currencies is that it does not have any value. This argument was deconstructed yesterday by a former senior America regulator.
In an interview with Barron’s, Sheila Blair argued that the argument that bitcoin had no intrinsic value was overblown. She argued that using the same logic, other fiat currencies would be worthless as well. She said:
‘I don’t think we should ban it — the green bills in your pocket don’t have an intrinsic value, either. The value is based on what others think is its value. That’s true of any currency.’
Sheila Blair is a highly respected professional in the country. During the financial crisis, she was the head of the Federal Deposit Insurance Corp (FDIC) which insures bank deposits. She served the institution for more than 5 years.
As shown below, the pair started moving up on 6 February. The pair has now completed the first and second phase of an impulse Elliot Wave which means that the current upward trend will continue. In an Elliot Wave, the third phase is usually the longest.