Bitcoinist Weekly News Re-Hash: Banning Encryption, Writing to Ross Ulbricht
The Bitcoin community had a fairly quiet week, with the price moving less than 1%. However, we have had a fairly active news week, with many developments coming out that may affect the community — specifically news regarding banning encryption. Let’s take a look at this news alongside the week’s market activities to see how traders might react in the future.
Daily Bitcoin Price Action
- November 16: $319.14
- November 17: $335.83
- November 18: $334.97
- November 19: $334.21
- November 20: $315.59
- November 21: $321.54
- November 22 Open: $326.40
- November 22 Close: $321.57
Total Change: +0.76%
The week kicked off on November 16 with the Bitcoin price at $319.14. The holding pattern from last week seems to have held in the beginning of the week, without a whole lot of movement after the large correction that came after the run-up to $450 a couple weeks ago. The price stayed in the high $310s for the first half of the day; at noon, the markets woke up a little bit, pushing Bitcoin into the $330s. The price held in the $330s for the rest of the afternoon, until 8 PM when the price jumped into the $340s, briefly peaking at $350.44. After that peak, however, the price declined gradually for the rest of the night, closing the day in the $330s.
Meanwhile, in the news, we reported the Rootstock sidechain. This sidechain application utilizes the Turing capabilities of Ethereum, combined with the Bitcoin blockchain, to help unbanked people around the world. Rootstock aims to use its sidechain to create a system of smart contracts powered by Bitcoin, which will allow for things like p2p microlending for people in developing countries without access to banking services.
Tuesday, November 17 began at $335.83, a price point that would serve as a basis for the day’s activity. Throughout most of the day, the Bitcoin price hovered around the mid $330s; when it did leave this range, it made sure to remain within the broader $330s range. This pattern persisted throughout the entire day, making for a relatively uneventful day in the markets.
In the news, however, we made an exciting report about Ross Ulbricht and Charlie Shrem, two big names in Bitcoin. Through a new service called Bitcoin Penpals, people can pay a small fee to get help writing letters to anyone they wish to communicate with. Although this service may be a valuable communication tool in general, it will be especially helpful with Bitcoin community members like Ulbricht and Shrem, who are behind bars with limited-to-no internet access.
November 18 started with the Bitcoin price at $334.97, a rather insignificant change from the start of the previous day. The 18th was another relatively uneventful day on the markets, with the price continuing to hover within the $330s. The price stayed in the mid-to-low $330s for most of the day, with a brief bump into the high $330s in the late evening. That small rise did not last long, though, and the day ended in the mid $330s once more.
On the 18th, we reported on a developing story regarding the tragic terrorist attacks that took place in Paris. In response to the attacks, government agencies across the globe have chosen to blame encrypted messaging services for the Paris attacks. There reasoning comes from the discovery that several of the terrorists in Paris communicated with each other through Telegram, a popular encrypted messaging application.
Thursday, November 19 opened at $334.21, almost no change over the starting price of the 18th. Things were quite a bit more exciting on the 19th though, as the bears made their voices heard. At 7 AM, the mid $330s pattern finally broke when the price dropped into the $320s. Several hours of stability followed this drop, but the decline really kicked into gear going into Thursday night. By 8 PM, the price had fallen into the $310s; the markets saw a trough of $310 an hour later at 9 PM. The markets attempted to recover in the last hours of the night, climbing to the high $310s in an attempt to form an upward trend going into the next day.
In a continuance of the renewed war against encryption, US Senator John McCain called for increased controls on encryption in light of the Paris terrorist attacks. McCain told media that he planned to have hearings and push for legislation that would require private companies to give the federal government access to encrypted user data. Even if such legislation gets passed, though, authorities would still have difficulty getting access to this data. Due to the nature of various encrypted services like Telegram, encrypted user data cannot even be accessed by the company hosting the service — even if they wanted to comply with government mandates.
Friday the 20th began at $315.59, the Bitcoin price still reeling from the losses suffered during the previous night. The markets proved fairly resilient, though, quickly rising to the mid $320s during the morning hours. Traders seemed to take a break after this recovery, as the Bitcoin price stayed in the $320s range for the rest of the day.
Saturday opened at 321.54, holding steady in the range established on the 20th. Bitcoin tried to get back into the $330s, but ultimately came up short — only reaching $328. After hitting that peak at 5 AM, the price stayed in the mid-to-high $320s for the rest of the day.
In the news, we reported on a new development coming out of Boston. Various organizations in the Boston area announced plans to conduct studies on blockchain technology and other areas of progress in the FinTech industry. Additionally, the famed Massachusetts Institute of Technology will launch a seven-week class on FinTech applications. MIT will follow up with this course in April 2016 by holding a competition for students enrolled in the class.
Sunday, November 22 started at $326.40. For most of the day, the Bitcoin price stayed in the mid $320s. The markets saw a slight drop into the low $320s at 6 AM, which lasted for several hours. Bitcoin regrouped at 4 PM and went back into the mid $320s. Then, going into the evening, the price dropped back into the low $320s, where the day eventually ended at $321.57. Overall, the Bitcoin price grew by 0.76% during the week.
Will the Encryption Debates Affect the Bitcoin Price?
I believe that we will probably see the price stabilize in the $320s-330s in the coming week, with a possibility of fluctuations of any frequency and intensity within that range. The markets still seem to be in a holding pattern following the post-bull run correction, waiting for something to trigger the next significant movement in price. Given that several governments have started discussions regarding regulating encryption and digital currency in the wake of the Paris attacks, there is also a possibility that global pessimism will discourage traders, leading them to sell their bitcoins. If this ends up being the case, we can expect the Bitcoin price to fall, possibly going sub-$300 for the first time in a few weeks.
Do you think the encryption discussions will affect the Bitcoin price? Let us know in the comments below!
Images courtesy of Rootstock, Telegram