Bitcoin price broke $12,000 USD to your second time in three days on Wednesday while the notoriously volatile cryptocurrency develops automobile among investors as a safe-haven currency amid concerns while the global economy heads towards recession. This takes BTC’s week-on-week gains to $2,000 USD.
Following on from 2019 ’s cryptocurrency crash, BTC enjoyed several months of steady increases within first half of 2019. However, in June the cost of BTC nosedived yet again with nearly $4,000 USD being knocked from its value within a week. With just a wild fluctuations across the summer months, which saw BTC’s value fluctuate between $9,000 USD and $13,000 USD, evidently the world’s premier cryptocurrency has returned on track as share prices topped $12,000 USD to your second time soon.
A Safe Haven for Investors
While one week of positive price movements for BTC may be followed by another dive, some market speculators believe that the only way has risen. One particular motive for this forthcoming nexus s BTC’s emerging reputation with investors as a safe-haven amid fears that your particular global recession is above.?According to The Block,?a Bitcoin and cryptocurrency industry website, the catalyst was unusually high Bitcoin volume on Binance, the world’s largest Bitcoin and crypto exchange. This could be as a result of investors seeking shelter in Bitcoin, as uncertainty hangs over traditional currencies.
Political uncertainty in the world has had a damaging effect on traditional markets, in the ever-increasing possibility of a No-Deal Brexit and Trump’s escalating trade war with China. Yesterday, China’s yuan currency hit its lowest time of over a decade.
Mati Greenspan, senior market analyst at brokerage eToro,?said, “Not surprisingly, [the falling yuan] certainly one possible explanation, but so is Brexit for that matter, regarding a no-deal Brexit might have people hedging themselves with potential of some other large leg down for that pound sterling.”
Other possible triggers on your bump in BTC stock include?a halving in block rewards for miners of Litecoin, the world’s fourth-largest cryptocurrency by price. This means that the sheer numbers of tokens Litecoin miners receive is cut from 25 to 12.5-known as a halvening.?Halvenings are seen being a positive event for cryptocurrency prices simply because they tighten demand. Bitcoin will undergo a halvening in May 2020 when rewards for miners will fall from 12.Five to six.25.