Bitcoin (BTC) Back to $41,000, Here's Why Retail Investors Should NOT Buy Yet

CoingapePublished on 2022-03-16Last updated on 2022-03-16

Abstract

Just a day before the Federal Reserve plans to announce its first rate hike in four years, Bitcoin (BTC) makes a surprising move to the north.

Just a day before the Federal Reserve plans to announce its first rate hike in four years, Bitcoin (BTC) makes a surprising move to the north. As of press time, Bitcoin is trading 5% up above $41,000. This is for the third time in three weeks that Bitcoin has made a move back above $40,000.

#bitcoin doing stuff pic.twitter.com/tEf25XtoQj

— Lark Davis (@TheCryptoLark) March 16, 2022

The current global macroeconomic situation looks to be quite fragile with the U.S. inflation numbers touching a four-decade high. On the other hand, the geopolitical uncertainty with the Russia-Ukraine war has added to the woes. A Twitter handle operated by Glassnode co-founders

explains:

Liquidation sizes decrease as Bitcoin is squeezed into the $38-$42k price range (B). Long liquidations continue to dominate. The next big move is confirmed once we break the $36-$45k range (A).

Mike Novogratz: Don’t Expect Bitcoin to Rally ‘Aggressively’

Billionaire crypto investor and the founder of Galaxy Digital Mike Novogratz said that there are very few chances for Bitcoin to rally ‘aggressively’ knowing that the Fed is planning to rate interest rates and go ahead with strong quantitative tightening measures.

The Fed is reportedly planning for four minimum rate hikes this year which could go as high as 7-8 hikes in case the inflation doesn’t come under control quickly. Novogratz expects Bitcoin to stay in the $30,000 to $50,000 range this year. He further added:

“I don’t think Bitcoin can rally aggressively until we get a pause. Bitcoin is a narrative story, it’s bringing people into the community. It’s hard to bring in new people when their house is on fire.”

Novogratz also said that the New York State needs to get rid of BitLicense which is making it extremely difficult for other crypto firms to do business in the region.

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What is $BITCOIN

DIGITAL GOLD ($BITCOIN): A Comprehensive Analysis Introduction to DIGITAL GOLD ($BITCOIN) DIGITAL GOLD ($BITCOIN) is a blockchain-based project operating on the Solana network, which aims to combine the characteristics of traditional precious metals with the innovation of decentralized technologies. While it shares a name with Bitcoin, often referred to as “digital gold” due to its perception as a store of value, DIGITAL GOLD is a separate token designed to create a unique ecosystem within the Web3 landscape. Its goal is to position itself as a viable alternative digital asset, although specifics regarding its applications and functionalities are still developing. What is DIGITAL GOLD ($BITCOIN)? DIGITAL GOLD ($BITCOIN) is a cryptocurrency token explicitly designed for use on the Solana blockchain. In contrast to Bitcoin, which provides a widely recognized value storage role, this token appears to focus on broader applications and characteristics. Notable aspects include: Blockchain Infrastructure: The token is built on the Solana blockchain, known for its capacity to handle high-speed and low-cost transactions. Supply Dynamics: DIGITAL GOLD has a maximum supply capped at 100 quadrillion tokens (100P $BITCOIN), although details regarding its circulating supply are currently undisclosed. Utility: While precise functionalities are not explicitly outlined, there are indications that the token could be utilized for various applications, potentially involving decentralized applications (dApps) or asset tokenization strategies. Who is the Creator of DIGITAL GOLD ($BITCOIN)? At present, the identity of the creators and development team behind DIGITAL GOLD ($BITCOIN) remains unknown. This situation is typical among many innovative projects within the blockchain space, particularly those aligning with decentralized finance and meme coin phenomena. While such anonymity may foster a community-driven culture, it intensifies concerns about governance and accountability. Who are the Investors of DIGITAL GOLD ($BITCOIN)? The available information indicates that DIGITAL GOLD ($BITCOIN) does not have any known institutional backers or prominent venture capital investments. The project seems to operate on a peer-to-peer model focused on community support and adoption rather than traditional funding routes. Its activity and liquidity are primarily situated on decentralized exchanges (DEXs), such as PumpSwap, rather than established centralized trading platforms, further highlighting its grassroots approach. How DIGITAL GOLD ($BITCOIN) Works The operational mechanics of DIGITAL GOLD ($BITCOIN) can be elaborated on based on its blockchain design and network attributes: Consensus Mechanism: By leveraging Solana’s unique proof-of-history (PoH) combined with a proof-of-stake (PoS) model, the project ensures efficient transaction validation contributing to the network's high performance. Tokenomics: While specific deflationary mechanisms have not been extensively detailed, the vast maximum token supply implies that it may cater to microtransactions or niche use cases that are still to be defined. Interoperability: There exists the potential for integration with Solana’s broader ecosystem, including various decentralized finance (DeFi) platforms. However, the details regarding specific integrations remain unspecified. Timeline of Key Events Here is a timeline that highlights significant milestones concerning DIGITAL GOLD ($BITCOIN): 2023: The initial deployment of the token occurs on the Solana blockchain, marked by its contract address. 2024: DIGITAL GOLD gains visibility as it becomes available for trading on decentralized exchanges like PumpSwap, allowing users to trade it against SOL. 2025: The project witnesses sporadic trading activity and potential interest in community-led engagements, although no noteworthy partnerships or technical advancements have been documented as of yet. Critical Analysis Strengths Scalability: The underlying Solana infrastructure supports high transaction volumes, which could enhance the utility of $BITCOIN in various transaction scenarios. Accessibility: The potential low trading price per token could attract retail investors, facilitating wider participation due to fractional ownership opportunities. 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363 Total ViewsPublished 2025.05.13Updated 2025.05.13

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