BITCOIN PRICE: $14K INSIGHT
Bitcoin price has rebounded massively this year, and new data shows that Bitcoin’s dominance over altcoins is higher than ever.
BTC/USD has seen strong gains since early spring as pressure continues to build in the trade war between China and the United States. The Bitcoin price rally came after global stock markets suffered and as they continue to struggle to avoid a recession. We’ve seen China devalue its own yuan currency below $7, a key level that initiated a huge flow of money out of the currency. It appears a great deal of that money flowed into bitcoin.
Altcoins have seen their hope for a rally disappear over and over again, as the majority have been outperformed this year by Bitcoin. It’s seeming more and more likely that Bitcoin’s market cap dominance, currently at 68.4% (a more than two-year high), may never again return to its 2018 all-time low of 35%.
The current bitcoin price movement is strengthening the sentiment of the cryptocurrency’s use as a hedging instrument. Bitcoin was initially designed to reduce dependence on the centralized financial system, so it makes sense that we are seeing a bitcoin price increase as news of geopolitical and financial instability reaches investors. These sentiments were echoed on CNBC when the CEO of consultancy firm Agecroft Partners Don Seinbrugged praised Bitcoin’s hedging properties, saying “Bitcoin is going to be here for a long time and long term I think it will be part of a lot of hedge funds’ portfolios.”
Most analysts are in agreement that an early 2020 price target of $14,000 is very realistic. Trader Josh Rager said on his Telegram channel “Bitcoin is clear skies on the weekly and monthly chart. Not much stands in the way” of another bull run. It seems that crypto, along with gold, is increasing its appeal to the masses as a safe haven of wealth as stocks start to show signs of a downturn.
BITCOIN PRICE CORRECTION CONTINUES, SUPPORT ABOVE $8K
Bitcoin’s dominance is nearly at the 70% level, with it currently possessing a 68.8% share. The total market cap is up by 3.5% ($327bn) and the overall volume is down by 31% ($61.6bn) on the previous week. Bitcoin is up by 3.9%, Ethereum by 3.1%, XRP is down by 3.8% and EOS is up by 0.6%. The best performers among the top-30 crypto were Crypto.com Chain (31.5%), Tezos (26.7%), and Monero (14.4%). After a volatile start to the week, coins were stabilizing towards the end, with total market cap ranging in a small 6% channel.
TD Ameritrade’s ErisX announced that the CFTC (U.S. Commodity Futures Trading Commission) granted it a derivative clearing organization (DCO) license. This license acts as a secondary approval on top of their existing designated contract market (DCM) license. With these approvals, the company can now launch crypto futures products under the watch of the U.S. regulator.
At a recent blockchain summit in Taipei, the CEO of Binance announced that the exchanged will soon launch a futures trading platform with leverage up to 20x.
Bitfinex has announced that the outstanding loan worth $100m from Tether has been fully repaid.
STOCKS BOUNCE AROUND AMID TRADE WAR STALLING
Stock markets all over the world saw waves of both buying and selling early this week as threats from both Beijing and Washington raised more fears of a global economic slowdown. The Dow Jones Industrial Average, S&P 500, and the Nasdaq Composite all bounced around, bringing them essentially even to where they were a year ago at this time.
The hardest-hit industries were industrial and technology companies that rely on global trade. Facebook, Apple, and Google parent company Alphabet each fell over 3%. Traders also showed their belief that there’s more instability to come, as the Cboe Volatility Index grew 40%, its largest one-day gain since October.
The combination of interest rate cuts, geopolitical uncertainty, and bearish markets makes it an ideal time to invest in Gold. The precious metal has not only seen continued growth this year, but it also acts as ideal storage of wealth in volatile markets like these.
“Gold is positioned to remain one of the prime destinations of safety this week as the horrible combination of US-China trade disputes and global growth concerns boost appetite for safe-haven assets,” FXTM senior research analyst Lukman Otunuga said.
Technically speaking, Gold’s picture is currently very bullish, and there are no indications that will change in the near future.
Now is the time to take advantage of the rising price of gold and protect yourself from stock market volatility. Indicators are showing that these bullish trends will continue in the gold markets, giving you an excellent opportunity for immediate growth and providing protection for your assets against future economic downturns. Don’t miss out on this opportunity. Act now and reap the benefits.