At the G20 Summit this weekend, Donald Trump and his Chinese Counterpart, Xinping Xao, agreed to ease down on the on-going trade war between the countries. Both the parties accepted not to increase the tariff on the import of other’s goods.
This came as positive news for the stock markets; however, Gold prices dropped by 1.23% as the confidence in the economy seems to be creeping back-up.
Nevertheless, Gold Bull, Peter Schiff still feels it is no threat to the price of Gold, he tweeted,
“…All that happened is that Trump backed down from his threat to increase tariffs on Americans buying Chinese goods. Even if there is eventually a face-saving deal, it’s not bearish for gold!”
Bitcoin Falls by a higher percentage
Bitcoin has broken below the $11,000 mark and is currently testing the $10,500 support level.
The volatility and the low market capitalization compared to gold is causing more significant percentage drops in Bitcoin. As the safe haven rhetoric seems to be easing, Bitcoin [BTC] buyers seem to be reaching exhaustion. Peter Schiff, who is also a basher of Bitcoin, tweeted,
How low would Bitcoin’s price have to fall for FOMO to become FOLE; “fear of losing everything,” causing hodlers to finally throw in the towel? Or are hodlers so convinced they are right, that they will bravely go down with the ship, and ride Bitcoin all the way down to zero?
While the rhetoric between FOMO and FOLE are exciting ideas to explain speculative markets, Bitcoin [BTC] seems to be stuck in the middle with the price breaking down just as FOMO was starting to grip the market.
Bitcoin has risen 195% since the beginning of the year while gold rose only about 10%. The FOMO that drove Bitcoin past $19000 during the bull run of 2017 has also subsided considerably.
However, it also seems to form a strong argument for ‘Bitcoin whales controlling the price movements.’ Nevertheless, the price of Bitcoin is trading above $10,000; this signifies that the traders of 2016-2017 haven’t left the space boosted by rising institutional interest.
The number of Bitcoin unique Bitcoin addresses are also on the rise. Mati Greenspan, the Senior Market Analyst at eToro, tweeted,
Bitcoin adoption rising. pic.twitter.com/bkyqUKZFLM
— Mati Greenspan (@MatiGreenspan) July 1, 2019
The cryptocurrency space is highly dynamic and is now facing increasing competition from the traditional banks and gold backers. Hence, the price should not be the only metrics to judge its success or failure.
Do you think that Bitcoin will become the ‘safe haven’ of choice for the world? 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