Bitcoin soared past the $11,000 mark recently and there may be no stopping the cryptocurrency in the near future, especially since many people are worried about a global recession. One thing that has become clear is that people look to safe havens when normal currency markets struggle. Gold and Bitcoin are considered good alternatives for investors who normally put their money into the stock market. Let’s look at the current situation and just how high Bitcoin might go.
U.S.-China Trade War
One of the major reasons that Bitcoin and Gold are getting a lot of attention right now from investors is the U.S.-China trade war. The United States is planning to put a 10% tariff on Chinese goods starting in September and China reacted by letting the Yuan drop. Their currency lost about 7% recently and there were no signs that the Chinese government was going to do anything to stop the slide. The U.S. dollar is rising, but that is not good news for other global markets and it is also not good for U.S. exports. It is also worth noting that China has given instructions to companies to suspend imports of U.S. agricultural products. China’s recent actions have angered U.S. President Donald Trump who has been known to escalate things with his quick temper and poorly timed tweets. “It’s among the worst-case scenarios,” said Michael Every, head of Rabobank in Hong Kong to the media, “First markets sell off, then Trump wakes up and this all gets far, far worse.”
Investors Consider Bitcoin Digital Gold
Bitcoin made huge gains on Monday, as the cryptocurrency zipped past the $11,000 mark and it may not be long before Bitcoin goes past $12,000 and a recent prediction by one analyst of $15,000 by the end of the week looks very possible. Investors believe that Bitcoin is a safe asset to hold when global markets are in turmoil. There is no question that the U.S.-China trade war is a big concern for many investors. Some of those investors have been putting some of their money into Bitcoin and the price continues to rise.
“Bitcoin has many use cases and one of the most important is as a form of digital gold,” Charles Hayter, CEO of CryptoCompare said to CNBC, “We have seen bitcoin jump before on macro uncertainty as it becomes a conduit and flight-to-safety asset.”
It should also be noted that Chinese investors make up a good portion of the overall crypto investor pool and those investors are taking positions in Bitcoin because of the struggles of the yuan. Bitcoin has had an excellent 2019, as the price has more than doubled, but the cryptocurrency has had a rollercoaster ride, as it was up to nearly $14,000 at one point this year, but also fell to under $9,000 at one point. And Bitcoin still has some work to do to match its record of nearly $20,000 that was set in 2017.
Bitcoin has been in the news on a regular basis in 2019 and the cryptocurrency got a boost from the news that Facebook is planning to develop their own cryptocurrency called Libra. Anytime that Bitcoin is in the mainstream news it gets attention from investors and that has been the case this year.
Many companies have already embraced cryptocurrencies, especially Bitcoin as an online payment method. Bitcoin has proven to be a reliable, safe and fast way to transfer money and businesses have taken notice. The more payment methods that are available to the customer is good news for a business and marquee companies like AT&T, Microsoft, leading online sportsbook BookMaker, and others have already implemented Bitcoin payment methods. You can get started with a Bitcoin wallet today and begin sending and receiving Bitcoin at BookMaker with no worries about your funds not going through. Check out the latest Bitcoin deposit and withdrawal options at BookMaker today and join the many customers who have already discovered Bitcoin as a reliable payment method.
Check out the latest Bitcoin deposit methods at BookMaker today.
