BITCOIN NEAR TERM FUNDAMENTALS AND UTILITY LIKELY TO BE SUPPORTIVE OF ITS PRICE

The stars maybe aligning for alternative asset Bitcoin bulls.  First, fundamentally, Bitcoin’s marginal mining cost is ~$6,400 according to bulge bracket broker Morgan Stanley.    A greater understanding of the marginal cost level of mining Bitcoin is helpful in forecasting prices; and most important where prices could bottom.   With Bitcoin trading at $6,500, investors can “check” the fundamental box.

Looking for other possible catalysts, the recent use of sanctions by the United States government as a means to coerce foreign states of certain behavioral or procedural changes may inadvertently act to increase the utility of Cryptocurrency in place of trackable fiat currencies.  With the US threat block Iranian oil sales looming, Bitcoin may find a users with Iran, if some physical oil barrels wind up being sold in the black market.  Presently, the oil market supply/demand equilibrium is very tight.  This will likely create incentives to find new creative ways to get the oil to market.  with Iranian oil sanction effective November 4th, investors can check the “utility” box.