The first half of 2019 has been particularly incredible for bitcoin. The flagship cryptocurrency has managed to regain quite of what it lost in 2018. Prices have risen an incredible 200% this year alone and they are still 185% up. But the last couple of months have been challenging for bitcoin as it has struggled to surge over the $10,000 mark.
However, the last few days have seen bitcoin resume its surging patterns. Bull patterns seem to have come back on bitcoin’s market. The positive pattern is been credited to the Chicago mercantile closing on the august bitcoin futures contract. It has subsequently resulted in a bullish price rise. And analysts had predicted that the closing in on the futures contract would result in a rise in bitcoin price, and this seems to be true.
Trading at around $10,760, the figure represents a 12% upsurge in the price of bitcoin from last week’s price of $9,300. And the experts are adamant that the prices will continue on the path of growth. They also think that the pattern might influence a general increase in cryptocurrency trading.
For the second time this year, bitcoin has risen along with the Chinese yuan. And this shows that the cryptocurrency is being affected by macroeconomic activity around the world. The most recent tariffs imposed by president trump on Chinese goods is the latest reaction.
As a result, the yuan rose 7 points against the dollar while bitcoin surged. The reaction on the current money markets situation gives analysts the conclusion that bitcoin is been perceived as digital gold.
Bitcoin As A Digital Gold
Kim dotcom, a prominent bitcoin proponent asks you to compare Gold market cap vs Bitcoins. He assures that you would see an enormous potential, perhaps surpassing the value of gold. You see, the yellow metal is heavy to carry around aside from the fact that it can be seized by the government and authorities. Bitcoin on the other hand has an incredible architecture behind it, aside from having a limited supply. Only 2% of internet users have ever used bitcoin.
A Safe Haven In Bitcoin
People have been investing in bitcoin and they consider the flagship cryptocurrency as one of the safe haven investments available on the market today. You see, the volatility on the money market is being influenced by a number of global political events such as Brexit and the US-China trade wars. It has led to investors looking for avenues where they can trade their funds, government bonds being at the top of the list. Investors have now turned to bitcoin.
But not everyone is of the opinion that bitcoin is a safe haven. Some analysts and economist have come out and challenged the notion. According to peter Schmidt, the crypto asset fails in its ability to hold onto the gains it made before. The prominent economist and investor concludes therefore that bitcoin has failed the crypto havens test.
Given the yuan-bitcoin relationship, investors believe that moving their funds from fiat to bitcoin is a wiser move than if placed in other assets. At the end of the day, the perception of bitcoin as a safe haven is growing alongside volatility on the money markets.