Bitcoin exchange rate: the collapse of the financial markets will support the cryptocurrency
On the morning of Tuesday the exchange rate of bitcoin skyrocketed to $400, the round breaking the important resistance level at $12,000, with local maximums at $12,200. Fixing prices above this level should convince market participants that the correction is really over. In the meantime, the bulls are constantly receiving evidence of unfulfilled customer demand. Area around $11,800, which was previously resistance can now act as support.
The geopolitical situation in the world now so badly shattered that the escalating trade war between the US and China with the subsequent devaluation of the yuan, fled to a safe haven, lowering the fed rate and fears about the stock indexes can provoke investors to move funds, even in these volatile assets such as bitcoin, in an attempt to wait out the storm in traditional financial markets.
Officials openly admit that you would not be able to cover Bitcoin, even if it is wanted. It will be worse than the situation in the global economy, the louder and irresponsible are statements of populist politicians, especially bright prospects partly from BTC and altcoins. Current growth spurts can also be associated with panic among the Chinese because of the trade war, the value of the yuan and stock prices in local markets are falling rapidly. Besides, it is impossible to underestimate the purchasing potential of the country and the tendency of the nation to gambling.
The process of consolidation of the interest of market participants around bitcoin continues, and the big investors mostly ignore all the other cryptocurrencies. This process is natural, since over time any market goes through a phase of consolidation. Projects such as Ethereum, occur very rarely, and with the advent of the major players in the promising development of small companies quickly bought out the market leader. In fact, the institutional infrastructure was created only around bitcoin.
At this point, cryptocurrency secured by the instability of the traditional financial and political systems. In addition, the negative news background around the fierce reaction of officials around the world against the LIbra faded away. Ahead of all waiting for the launch Bakkt and the emergence of deliverable futures on BTC, which in theory can emerge in ideal conditions for continued growth of bitcoin.
Altcoins are reluctant to join the rally. The main event in the world of altcoins became halving in the Litecoin (LTC). Now, the reward the miners reduced to 12.5 LTC. Along with this event, the LTC rate showed considerable growth spurt of almost 12%. However, fuse didn’t last long, and by the evening of Monday LTC sold out. Halving 4 largest by market capitalization crypto-currencies to date have not yielded the expected dividends. By Tuesday morning, even amid surge in bitcoin LTC is still not up to $100.
The material is provided,