Bitcoin [BTC] broke above $11,500 as the bullish momentum in it continued above $10,500 during early Eastern trading sessions. It gained around 6.85%, adding about $600 to its price.
The price of Bitcoin [BTC] at 3: 15 hours UTC on 5th August is $11,563. It tested a high at $11,676.
The break was significant from a psychological point of view and even technical analysis. Bitcoin [BTC] broke above the first top (of the double top) and would now be eyeing to break $13,000.
Moreover, Gold also tested it’s yearly high and broke above the trendline. Whereas, Dow Jones Industrial Average closed down 250 points on Friday.
The inverse correlation can be attributed to the Fed’s rate cut view, and the renewed trade was between the US and China. In the Chinese currency, Yuan, Gold broke above 10,000 CNY, which is also a critical psychological level. Peter Schiff leading Gold investor and proponent tweeted,
Despite Gold’s breakout to a 6-year high in July, physical sales in the U.S. fell to a 12-year low. Gold buyers are also Trump supporters, and since they no longer worry about the economy, they’re not buying gold. When reality sets in, they’ll be paying over $2,000 per ounce!
Since, the beginning of the year, like Gold, Bitcoin has grown as a viable hedge against the loss from traditional markets. Anthony Pompliano, a leading proponent of Bitcoin, tweeted,
UPDATE: Bitcoin is performing as designed during times of global instability.
The total dominance of BTC over the cryptocurrency markets is about 67.6% at the time of writing. The altcoins have continued to lose Sats. It also suggests that the bubble characteristics and the coupling of altcoins with Bitcoin are beginning to end.
Tom Lee, the co-founder of Fundstrat, who is known for his price and sentimental analysis of Bitcoin, was also euphoric seeing this move in Bitcoin. He suggested that ‘hodling’ was the best long term strategy.
Do you think that the Fed’s will retaliate to it or traditional investors will further give in to selling pressures? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com