Bitcoin, which was looking to break bearish in the past week, rejected yet another attempt to fall below $9000. The price of Bitcoin at 5: 30 hours UTC on 20th August 2019 is $10,796. It is trading 2.83% higher on a daily scale.
The Bakkt announcement has had a significant positive effect on market sentiments. Moreover, Bitcoin’s primary utility at this time is a ‘safe haven’, hence, the rise was being attributed to the growing unrest in Hong-Kong. However, there are significant concerns about whether the correlation is real or just speculation.
Jeremy Allaire, CEO at Circle mentioned in a recent interview that the ideology of Bitcoin as a safe haven surely gets a push in areas where “intense concern about capital control is there.” However, one cannot “measure at any given time” the correlation to speculation or actual buying from the affected regions.
Moreover, he also added that “last week was a significant kind of risk-off week for equities”, meaning that investors seemed to be moving to less risky assets. While this can again be a positive signal for Bitcoin, he also warned that Bitcoin is already up about 200% in the last 9 months, therefore, they might look to book their profits there as well.
G7 Expectations: Good or Bad?
The G7 Conference will convene on the 24 August, 15 nations along with the FAFT Financial Action Task Force (on Money Laundering) will discuss on the matter. The FAFT recently implemented the ‘travel rule’ guidelines for crypto exchanges and service providers to tackle the problem of money laundering through crypto.
Moreover, any restrictive law imposition or negative view of Bitcoin or cryptocurrencies could adversely affect the price. Joe Kernen asked Jeremy about the focus on crypto that can be expected in it. He said,
“Crypto as an agenda item is absolutely on the docket. Its becoming obviously an agenda item… Not just because of the growth in Bitcoin, but also stablecoin like the US dollar coin and Libra”
Nevertheless, he does not expect any specific policies to be announced. He only expects them to reveal their ‘perspective’ on it.
Will the perspective be positive or negative? 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