$20,000 – $20,500 marks a area of strong resistance in Bitcoin. With additional selling pressure still a strong possibility in the stock market, it is unlikely that this is the bottom for BTC. With that being said, we still remain confident that Bitcoin and the crypto market will end the year on an optimistic note.
The groundwork is being laid for a decisive rally into the end of the year. We believe that cracks in the dollar are finally starting to show, and will allow for a sustained move higher in cryptocurrencies and other risk assets. Moreover, China’s US Treasury holdings have slumped to a 12-year low, and the Chinese government intends on selling even more US debt. Whenever the dollar sees extreme selling pressure, it provides an opportunity for equities, commodities, and digital assets to experience a powerful rally.
One of the largest use cases of digital assets is tokenization. For example, we have seen the tokenization of art, and pieces of real estate, and now we are starting to witness the tokenization of carbon. Recently it was announced that the platform CYNK would tokenize carbon credits using Hedera Hashgraph. CYNK is the first platform in Africa that is using carbon credits to reduce emissions, and, as a result, Hedera has the potential of creating a greater foothold in the region. The United States and its allies are pushing for a dramatic reduction in greenhouse gases. With the advent of distributed ledger technology, cryptocurrencies like HBAR and ALGO have the potential to be big disruptors in the green economy. The market for carbon credits is growing exponentially, and Hedera is poised to be a serious player in this specific niche.