- Bitcoin (BTC) peaks at $9,429.99, its top in practically three months.
- At its top level Wednesday, the top cryptocurrency changed into once up 32% yr-to-date.
- Bitcoin is behaving plenty love a “protected haven” asset, in step with Fundstrat’s Tom Lee.
Bitcoin’s trace rallied to practically about three-month highs on Wednesday, as the top cryptocurrency persevered to level to risk-off allure amid the coronavirus outbreak.
Cryptocurrency BTC/USD Rallies; Altcoins Follow
Bitcoin peaked at $9,429.99 on Bitstamp, its top since early November. The flagship cryptocurrency changed into once closing seen trading at $9,326, having gained greater than 3%.
The technical charts showcase an asset that’s in a sure uptrend. The most well liked candle on the day-to-day chart puts bitcoin above the 200-day transferring average. It blew past the 50-day MA greater than three weeks prior to now.
At contemporary values, bitcoin accounts for 66.4% of the overall cryptocurrency market. Its market cap of practically about $170 billion represents a $50 billion recovery from closing month’s swing low.
Altcoins and tokens followed in bitcoin’s lead on Wednesday, as Ethereum, bitcoin money, Litecoin and EOS all reported positive components of no longer no longer as a lot as 2%. The final crypto market cap peaked advance $258 billion, the top since unhurried September.
Cryptocurrency Battle of the Safe Havens
Bitcoin is never any longer top the right-performing asset of the closing decade, it’s arguably the most magnificent haven for investors seeking to stride financial and geopolitical risks.
On Tuesday, Fundstrat’s Tom Lee when put next bitcoin’s performance to gold in the so-known as fight of the protected havens. On the time, bitcoin had gained 26% yr-to-date. On the top level on Wednesday, the yr-to-date returns were roughly 32%.
By comparability, gold is up “a respectable 3%” on the yr.
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It didn’t salvage long for Euro Pacific Capital CEO Peter Schiff to rebut (in the identical thread, mind you):
Whereas bitcoin still has a protracted capability to head sooner than it’s ever thought to be a bona fide protected haven, its correlation with gold is rising stronger.
For the first time this yr, bitcoin’s 60-day correlation with the yellow metal has changed into definite, in step with Bloomberg. Set up in a different way, bitcoin has been acting more love gold and less love shares in contemporary months.
Analyst Mati Greenspan highlighted this pattern in a chart that compares bitcoin’s correlation to gold and shares:
After breaking out of a multi-yr undergo market, gold might very smartly be gearing up for one more saunter increased in 2020 as investors hedge against political and financial risks. If bitcoin is certainly ‘digital gold’ as its proponents claim, the risk-off pattern might still profit the dominant cryptocurrency.
Disclaimer: The above might still no longer be thought to be trading advice from CCN.com. The author owns bitcoin and assorted cryptocurrencies. He holds investment positions in the money but does no longer exercise in rapid-time-frame or day-trading.
Final modified: February 3, 2020 9: 30 PM UTC
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