Bitcoin Market Review: Will Bitcoin Be The Key Hedge In the Impending Currency Crisis and Monetary Carnage?
- By Pierre-Alexandre
August 12th, 2019
With the growing uncertainty of the U.S.-China trade war and the Brexit deal, Bitcoin could set the tone of the next big changes in the global economy.
It has not been a very exciting week for Bitcoin investors as the BTC price was fluctuating around $11600 levels. Early last week, there was a momentary spike at Bitcoin climbed past $12,000 levels on August 6.
However, the momentum was short-lived as Bitcoin slipped back to $11700 levels in the next few hours. On the lower side, Bitcoin has slipped below $11,300 levels on Sunday, August 11.
Overall, Bitcoin ended the week at 2% price correction. At press time, BTC is trading at $11,388 with a market cap of $203 billion. The average daily trading volumes are currently above $14 billion.
Bitcoin continues to extend its dominance in the cryptocurrency market. At present, Bitcoin alone contributes 68.6% of the overall cryptocurrency market cap.
Top Recent Bitcoin News
- For the first time ever, the Bitcoin network hash rate has touched a whopping 80 quintillion hashes per second. The hash rate is the measure of the computing power used by the network to add new blocks or validate the BTC transactions.
As per the BitInfoCharts, Bitcoin attained this milestone last week on August 8. The higher hash rate indicates the strength of the Bitcoin network and its ability to counter external attacks.
Bitcoin’s hashrate hit a new all-time high today.
— Pomp 🌪 (@APompliano) August 8, 2019
The most secure computer network in the world just got more secure 🔥
- Business magnate and Tesla CEO Elon Musk has recently extended his support to pro-Bitcoin U.S. Presidential Candidate Andrew Yang. Musk responded to a tweet of American political commentator Dan Carlin. Elon Musk himself has praised Bitcoin and its blockchain technology in the past.
I support Yang
— Elon Musk (@elonmusk) August 10, 2019
- On the other hand, the U.S-China trade war seems to escalate further. Last week, US President Donald Trump called China a “currency manipulator” after China allowed its currency to weaken despite the ongoing trade dispute.
Well, the growing economic uncertainty between the two countries has caused investors to move towards Bitcoin.
“Investors flee to Bitcoin”
— Pomp 🌪 (@APompliano) August 5, 2019
THE VIRUS IS SPREADING 🔥 pic.twitter.com/wkmwZ5pXxi
- The New Zealand tax authorities have recently passed a new ruling which allows citizens to legally receive their incomes in Bitcoins. However, the guidance notes that the income tax treatment for such incomes will be subjected to the crypto laws. Also, there’s a caveat that the rule only applies to salary and wage earners, but not to the self-employed taxpayers.
- In a report by The Independent, Nicholas Gregory, CEO of blockchain firm CommerceBlock, mentions that the no-Brexit deal could push to record highs this year in 2019.
Gregory said:“Not only will a no-deal departure from the EU create turmoil and volatility across two major fiat currencies, it will also trigger an identity crisis for the global system as the contingency and vulnerability of major global fiat currencies is laid bare.” - Economist Raoul Pal argues that amidst the growing currency crisis, investors are moving more towards gold, government bonds, Bitcoin, as hedge instruments. In the impending monetary carnage, Pal believes that Bitcoin is likely to thrive in such a situation. Check out
A Currency Crisis?
— Raoul Pal (@RaoulGMI) August 7, 2019
When the long-term charts all start pointing to a single event risk, I pay attention.
When those charts are at the KEY level, I focus.
And when they break, it is time for action...
Something really BIG is going on...
Bitcoin Market Review Using Omenics’ Sentscore
The Omenics Sentscore chart shows a drop in the overall market sentiment around Bitcoin. However, the overall market sentiment remains “positive” throughout last week.
The news Sentscore indicator shows a drop down from the “positive” region to the “neutral” zone. By the end of the week, the graph has started to move back northwards:
The social sentiment graph indicator remains volatile in the “neutral” zone between 4-6:
The buzz indicator moved from the “negative” to the “neutral” zone indicating “moderate” amount of content around Bitcoin. But by the end of the week, it slipped back into the “less content than usual” zone:
The technical indicator for Bitcoin drop from the “very bullish” to the “bullish” zone:
By Pierre-Alexandre
Pierre-Alexandre is passionate about new technologies and innovation. After several years of experience in software and innovation agencies, he wanted to go all in on the blockchain revolution and co-founded Omenics.
