Bitcoin (BTC) is early next week, behind the latest “ban” in China, but the next RD&D story has already begun.
The US Infrastructure Bill is back on the table and the final vote is likely to take place this week on what could shake up the cryptocurrency business.
Meanwhile, baseline and on-chain metrics remain more optimistic than ever, with traders betting – in the worst case – a moderate price drop to a low of $ 36,000.
What is the probability? Cointelegraph looked at five things that could get the markets off the ground next week.
D-Day for infrastructure bill
The narrative shifts from China to the United States this week as lawmakers decide the fate of the so-called “infrastructure bill.”
House Resolution 3684, after Senate approval, is set to see a final vote on Monday – despite rumors it could be delayed.
The bill contains a contradictory description of a “middleman” that could have far-reaching implications for the US cryptocurrency business. Work on changing the language is still ongoing, with figures such as Wyoming Senator Cynthia Loomis and spokesperson Caitlin Long leading the way.
In the current text, an intermediary is described as “any person (for a fee) who is responsible for the regular provision of digital asset transfer services on behalf of another person.”
In total, as of September 27, 539 amendments have been submitted to the bill.
While the local crypto industry is likely to be a thorn in the neck, HR.3684 certainly isn’t of much interest to seasoned bitcoin processors.
However, given the recent catastrophe of China’s “ban”, market sentiment is sensitive to R&D reports from both sides.
“Bitcoin is twofold. Digital assets are apolitical, ”summed up Senator Loomis on Twitter on the eve of voting day.
Expect Green Week in Cryptocurrency Markets
There is a famous story of trading at the BTC spot price on Monday, when BTC / USD returns to the $ 44,400 mark.
This marks the beginning of a resistance level that finally pushed back last week after briefly surpassing $ 45,000.
So far, this hacking attempt hasn’t been that different: $ 44,000 hasn’t been put into the press.
However, recent progress is refreshing compared to forecasts of a return to the $ 30,000 range late Sunday.
“I’m looking forward to a green week for bitcoin,” Cointelegraph contributor Michael van de Poppe summed up late Sunday night.
Weekly candlestick chart BTC / USD (Bitstamp). Source: TradingView
The weekly close, which has been a source of controversy in recent days, did not disappoint, reaching $ 43,144, well above the lows seen by some traders.
A trader and analyst at Rekt Capital demanded a closing price of $ 43,600, which was not realized on time but came a few hours later.
“BTC remains trapped by the support of the 111-day moving average of the Pi cycle and this immediate red resistance zone,” he added in further comments.
“This pressure on prices is already shaping the market here, possibly in the early stages of the ascending triangle.”
BTC / USD scenario. Source: Rekt Capital / Twitter
Lightning Network Leads Core Growth
Everyone smiles at the backbone of the Bitcoin network for a week in a row as estimates point to a sixth consecutive increase in difficulty.
After a fifth straight rally last week, which is a rare achievement in itself, the data shows Bitcoin will be even harder to adjust in eight days. These will be the first six consecutive promotions since mid-2019.
This is not just a problem – the hash rate is now around 145 EH / s and only 23 EH / s is far from the maximum.
Statistics show the condemnation of the miners, as well as the extent to which they returned after emigrating to China just four months ago.
On the consumer side, the story is equally impressive. The Lightning Network, recently successfully deployed in El Salvador, is approaching a capacity of 3,000 BTC. Since the beginning of 2021, this capacity has almost tripled.
“The capacity of the public Lightning Network has exceeded 2,900 bitcoins. Over 400 bitcoins have been added in the last 10 days, ” commented investor Kevin Rock along with a chart.
“Find me a better card, I’m waiting …”
Bitcoin Lightning network capacity versus BTC / USD chart. Source: LookIntoBitcoin
Lightning forms a so-called Layer 2 protocol that instantly calculates off-chain BTC transactions with virtually zero cost.
Last week, Twitter became the first major payment gateway partner Strike to implement betting on the Lightning Network.