BTC Reclaims $12K USD only to drop $700 in minutes
Highs and Lows
For the first time in 4 weeks, BTC was trading above $12,000 and seemed to have found acceptance above key resistance. This morning, BTC was hitting highs near $12,300, bringing its weekly gains to 25% but within minutes, it crashed to almost $11,600. Nevertheless, Bitcoin price is still currently up by 0.13% on the day.
Jeremy Allaire
Circle’s CEO
Bitcoin as a Hedge
CEO of crypto firm Circle, Jeremy Allaire, suggested in an interview with CNBC that the several days of intense price action is due to macroeconomic turmoil. Allaire reasoned that Bitcoin has become a safe haven to store wealth in times of geopolitical turmoil.
“You can very clearly see some macro-correlation there. I think the broader theme of, you know, Bitcoin specifically, crypto more broadly participating in these global macro forces is becoming more and more clear. Rising nationalism, rising amounts of currency conflict, trade wars, these all obviously are supportive of a non-sovereign, highly secure digital store of value.”
As of writing, the total market cap of all cryptocurrencies is ~$310B US, about 18% lower than last week. The traditional stock markets have also taken in a hit this morning with the S&P 500 and Nasdaq both reporting losses. The ongoing events of the United States – China trade war and tension in Hong Kong have had positive impacts on Bitcoin as the situation may have spurred on Chinese investors to interact more with the cryptocurrency markets.
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