Bitcoin per day lost nearly 2%, what happened to the cryptocurrency?
Bitcoin continues to be traded at $10,200 within 6 days ago range. In recent days he has lost almost 2%. Leading altcoins also be reduced by 2-5%. The index of dominance of bitcoin remains at multi-month highs of 69%. All together, this demonstrates a tendency for further growth of the reference cryptocurrency, which actively supported the weakening of the market for altcoins.
Technical analysis also indicates that the price dynamics of Bitcoin has formed a triangle, obviously gaining momentum for further breakthrough. This can be increase in rate up to $18,500. In addition to technical factors, the dynamics of prices is also influenced by a fundamental new connection.
On Friday there was another evidence of the correlation of Bitcoin with geopolitics and macroeconomic uncertainty. Renowned economist and trader Alex Kruger noticed that right after trump tweets Friday about the escalation of a trade war with China, the bitcoin began to rise sharply. However, long this rally did not last, and she, the speaker has indicated that bitcoin is becoming a way of hedging in the real time.
However, BTC hardly be called a replacement of gold or tool for investment which would experience periods of volatility in traditional markets. Rather, the asset goes through the stages of growing up and really attracts more and more interest from investors. Further evidence of the integration of digital currency in the macro-economy can be considered a surprise announcement of the Bank of England Governor Mark Carney about the desire to abandon the dollar and switch to digital.
During a speech in Jackson hole, he radically spoke negatively in relation to the hegemony of the American currency and in relation to the prospects for the emergence of another provision, like the Chinese yuan. Ultimately, Carney believes that the dollar should be replaced by some form of cryptocurrency that is similar to the recently introduced Libra from Facebook. It is difficult to underestimate such statements. However, it should be borne in mind that mark still will soon leave his post and his statements, apparently, were made possible on this background.
The conclusion that we are in the process of global restructuring, the evolution of the present monetary system. Ways of financial interaction between countries, banks and population will change radically. So far, everything points to the approach of full control over the cash flows, which has always been a goal of governments. The irony is that this can be implemented through technology, the aim of which was the release of mediators of all levels.
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