Not Gold Yet, But Valuable Now – Bitcoin Price Analysis
Bitcoin Price Analysis – Shines Bright But Not Like a Gold
So, at the moment, the most popular cryptocurrency, Bitcoin, has crossed the cost threshold of $ 8700 thousand, which means that its price by the end has increased by 3% since this Monday. It is also worth noting the fact that altcoins stopped in the green zone, i.e., are in the same position on the pricing chart. Equally important, bitcoin forks such as Bitcoin Cash (+ 15%), Bitcoin SV (+ 8%), Bitcoin Gold (+ 14%), and Bitcoin Diamond (+ 11%) have also shown impressive growth since the beginning of this week.
But the reasoning about what is the reason for this, albeit insignificant, increase in price is very peculiar. Some speculate that the cryptocurrency pricing engine today is a possible epidemic in China. Such conclusions are self-evident since we could observe a similar jump in price when all the media spoke of a new wave of conflict between the US and Iran earlier this year. Of course, among the reasons why the cost of bitcoin has increased, it is worth mentioning the increase in futures trading volumes and the launch of trading bot orders.
But let’s understand in more detail the situation with the price of Bitcoin and the outbreak of the virus in China. Beyond any doubt, we can argue that even such a theoretical threat affects the economy around the world.
Oil may fall in price due to the prospect of lower demand, and stock indices respond to deteriorating sentiment, as well as the likelihood of supply chain disruptions possible bankruptcies. Nevertheless, it’s too early to speak about the panicky demand for an alternative opportunity to transfer capital in the form of investments in cryptocurrency assets.
Such a development of events can be discussed only if the epidemic grows to the scale of a national catastrophe with the prospect of shutting down mining farms, interruptions in the supply of mining equipment, restrictions on capital inflows from the country, and other serious consequences.
As we mentioned earlier, the reason for this, albeit insignificant, jump in price may be bots, namely the process of their reaction to technical indicators.
Nevertheless, this specific situation, which has developed now in the cryptocurrency market in China, can in no way be described as panic. Last week, we could observe a decrease in the value of cryptocurrency assets in the market. We all remember how large-scale the growth was in response to Xi Jinping’s statements about the country’s course on the blockchain. Thus, it will be possible to link the epidemic and the dynamics of bitcoins in the event of a jump in volatility and a twofold percentage movement of markets.