2020-1-9 18:17 |
Bitcoin is currently trading at $7,860 and down by 5.38% in the past 24 hours after yesterday’s high of $8,460.
The break of the $7,800 level was a clean one which was on the back of strong volumes, the top ten exchanges with real volume traded about $1.6 billion.
The level has been “quite significant” in the BTC’s price development ever since it was first crossed in November 2017, explained Mati Greenspan, founder of Quantum Economics in his daily newsletter.
Actually, the sentiments have been higher than it was during Chinese president Xi Jinping’s boom of late October.
But as some commentators have been fearing, Bitcoin price couldn’t sustain the increase in price, an effect which is seen in altcoins as well.
Top cryptocurrencies are all in red by as much as 7.50%. The vast majority of the market is experiencing losses except for a few exceptions like Lisk which is up by 13.62% and REN (5.74%), ZRX (2.51%), TOMO (2.04%), and ETC (0.76%) among others.
Source: Coin360Bitcoin price made a retracement after breaking above $7,800 after President Donald Trump assuaged the tension in the Middle East. Gold, Oil, and Treasuries also fell while US stocks rose to records as Trump said the US did not have to respond to the Iranian attack on military bases in Iraq overnight. He said no Americans were harmed in those strikes. Sameer Samana, senior global market strategist for Wells Fargo Investment Institute said,
“While geopolitical risks are here to stay, and will cause episodic volatility, we don’t believe the current circumstances warrant a change in the investment outlook.”
Strengthening Bitcoin’s case as a digital goldAlthough the price hasn’t been able to break its downtrend, the last few days turn out to be very bullish for the world’s leading cryptocurrency in the grand scheme of things.
It has been the first time that Bitcoin reacted to a macroeconomic and geopolitical event just like other assets. Bitcoin seemingly reacted to the Iran conflict as a risk-off asset just like the yellow metal.
Bitcoin’s response to Iran-US tension, according to the market, strengthens its case as a digital gold.
Bitcoin and the Iran conflict: Is $BTC becoming Digital Gold?
From @RyanWatkins_ pic.twitter.com/jN6TIlM8k9
— Messari (@MessariCrypto) January 8, 2020
The first time Bitcoin reacted to the US drone strike that started it all by killing Iranian Major General Qasem Soleimani, unlike other assets, Bitcoin did not respond immediately but after three hours.
But such delayed reaction or a spurious connection, Coin Metrics says could be because of the limitations on the speed of information diffused.
I think Bitcoin just got its first successful beta test of being a war time safe haven, this is a pretty big test for Bitcoin.
— Willy Woo (@woonomic) January 8, 2020
The market, however, is excited about this development as Jeff Dorman, CIO at Arca says,
“BTC reacting to Iran, up & down, is a VERY encouraging sign for BTC. It means every non-crypto investor can now believe with confidence that long-term BTC is uncorrelated but short-term can still act as a VIX/Oil/Gold substitute. Expanded playbook = more overall interest.”
Bitcoin now he says has the same the “world is ending” upside like gold but with added “tech upside.”
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