Crypto Briefing 8/22/23 – The Forecast

Crypto Briefing 8/22/23

Crypto Briefing 8/22/23

After a summer of consolidation, we have finally seen Bitcoin break to the downside. Short-term support for Bitcoin lies at $25,000, with significant support at $23,000. There is a 60% probability that Bitcoin continues with this downside breakout, and delivers more pain to the crypto market.

In the past, we have highlighted how CBDC will change the crypto market dynamics. We believe speculators will turn their attention away from whatever new novelty there is in the crypto space and begin focusing on privacy. CBDC’s will enable all transactions to be tracked, taxed, and even have the capability to restrict where people can spend their money. Should this be the case, black markets will emerge.

HBAR has shown signs of strength following the Federal Reserve’s Fed Now program providing support for a Hedera-based micropayment service named Drop. Fed Now is a payments service that will enable instant payments similar to what Ripple is trying to do with their On Demand Liquidity service. Hedera’s fundamentals point towards the network dominating the micropayments industry due to its fast and cheap transaction fees.

Privacy coins such as Z Cash and Monero enable their users to not have their transactions tracked and can be considered an encrypted version of Bitcoin. As governments begin their rollout of CBDC’s in this decade, we expect the demand for privacy coins to increase exponentially. Right now, Monero is one of the most valuable privacy coins in crypto, where Z Cash resides at a lower market cap. We feel that privacy coins ought to play a part in every long term crypto investor’s portfolio.

Z Cash is sitting at major support and has a high probability of going lower should Bitcoin continue its decline.