The price of Bitcoin [BTC] at 3: 00 Hours UTC on 29th May 2019 is $8650. It is trading 1.5% lower on a daily scale. Nevertheless, the drop is negligible compared to the rise in Bitcoin from the past couple of weeks.
Bitcoin [BTC] Futures is also an efficient market in the space with CME daily volume reaching above $1 billion. Since the consolidation began at $8000 level, a further bullish signal was hard to identify. Moreover, while institutions like Fidelity and Bakkt had made launch announcements, their markets haven’t yet come to life.
Jim Luorio, spoke with CNBC’s Seema Moody to weigh in on the extreme bullish move, he said,
“I think 90% of the move is people think that they’re going to miss out on the rally… Assets that are primed for bubble creation.” He also predicted probable bullish fundamentals, “The idea behind cryptocurrencies is that FIAT currencies aren’t treated very well by central banks and this is another store of value. But right now, I guess it is totally fuelled by FOMO.”
According to his analysis, a move above $9020 would trigger another ‘leg-up’ with a target near $9600. A stop-loss should be placed in case price breaks below $8590. The goal on the bearish side is $8000.
Bitcoin Eating From Gold’s Share?
Nevertheless, Brian Stutland suggested that Gold investors might be looking at investing in Bitcoin [BTC] right now. He said,
“One thing that may be happening here is, look at the price of Gold. That has not rallied as Bitcoin has rallied of a low-interest rate environment… I think what you’re seeing is some of that shift, and all of that money moving in from gold and in a low-interest rate environment are both fueling the Bitcoin to the upside.”
The interest rate for investments in the US is decreasing in the wake of the US-China Trade and other economic bottlenecks. Hence, during tumultuous times in the economy, people often resort to investing in Gold as a haven.
However, Bitcoin is now emerging as a better alternative that offers feasible independent control. Whereas Gold bars are heavy and large, and trust investment requires losing control. Nevertheless, Bitcoin is an emerging asset. Hence, a bubble creation, again, is highly probable. However, key development around it cannot be ignored as well.
Do you think that Bitcoin is mature enough to grow as a global safe haven against FIAT? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst 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