The bitcoin price pierced $12,000 on Tuesday as traders seek refuge from global instability on traditional markets.
As global stock markets reel from the escalating trade war between the US and China, Bitcoin has climbed more than 20% in five days, briefly hitting $12,265 on Coinbase. The move upwards was accompanied by the strongest volume in over two weeks.
Bitcoin: a safe haven?
The bitcoin price rally comes after global stock markets suffered their worst day of the year so far. The Dow Jones lost almost 1,000 points in Monday’s trading session after China hit back at Donald Trump’s trade war threats.
China let its yuan currency fall beyond the key $7 level, prompting a huge capital flow out of the Chinese currency. Analysts speculate some of that money may have flowed into bitcoin in the last 24 hours.
Circle CEO Jeremy Allaire praised bitcoin as a store of value amid global macro uncertainty:
“Humanity has now created a non sovereign, highly secure mechanism to store value that can exist anywhere that the internet exists. It’s uncensorable, it’s unseizable.”
Bitcoin price: what next?
After an explosive two days, some analysts expect a small pullback in the bitcoin price. Trader Josh Rager confirmed on his Telegram channel:
“I do believe BTC needs to have a slight pullback sometime.”
However, most analysts agree that the bulls have taken control of the market and the 2019 high of $13,880 is now in range. As Rager went on to explain:
“Bitcoin is clear skies on the weekly and monthly chart. Not much stands in the way of previous $13,880.”
$BTC is clear skies on the weekly & monthly chart
Not much stands in the way of previous $13,880
But a lot can happen during the week including a pullback
Lots of people still think $8k, but if Bitcoin closes this week at these levels I don’t expect to see 4-digit BTC again pic.twitter.com/kDZUvA7Jfb
— Josh Rager 📈 (@Josh_Rager) August 5, 2019
As CCN reported, bitcoin’s surge as a safe haven may be nothing more than a self-fulfilling prophecy. But right now it’s working.
Click here for a real-time bitcoin price chart.