Recording its highest value since September 2018, Bitcoin hit $7,785 mark before finally settling down to $7,000, according to data by Bitstamp. The rise in Bitcoin value has enthused investors who are now hoping that the market rally will continue in the coming days too. Despite the concerns looming large on the US-China trade war, Bitcoin has positioned itself extremely well as the largest digital coin by market cap which shows no signs of abatement. Many market experts are also of a viewpoint that overall sentiments in the market remain bullish and it will continue to climb up in the coming short term to medium term scenario. One such prediction has come from the Chief Executive Officer of Luno cryptocurrency organization, Marcus Swanepoel who said that outlook for the cryptocurrency market including Bitcoin continue to remain bullish.
The market has now set its eyes on the target of $8,000 for Bitcoin, but experts warn that the next price movement of Bitcoin will depend on the state of affairs between China and US trade relations. Until now, Bitcoin has shown no signs of being affected by the trade war, but that doesn’t mean the same will hold true in the future. Rising tensions between the US and China could potentially have significant implications for the cryptocurrency market. If the intensity of the trade war goes further, then the investors may find digital currency including Bitcoin as an attractive destination for parking their money and that could bode well for the overall cryptocurrency market.
Not only Bitcoin, but the second largest cryptocurrency by market capitalization Ethereum is also bringing home the benefits of enhanced turbulence in the business environment. The coin registered a healthy gain and last week, touched around $204 before finally dropping to the level of $188.
Turbulent Economic Environment
Most analysts are attaching growth in the cryptocurrency market to the ongoing tumultuous condition in the economic environment across the globe. With all other asset classes such as oil, gold, etc. feeling intense pressure, cryptocurrencies are emerging as one of the favorite destinations for the investors and this is clearly visible in the way growth is unfolding in the crypto sector. Along with the turbulent economic environment, crypto investors are also upbeat about the rising adoption of the digital coins – both among the general public and businesses. With the big names like Facebook, Samsung, IBM, and Microsoft taking a plunge into digital coins and blockchain technology, the credibility of crypto industry has become very strong among the investors. Especially, the use of cryptocurrency and blockchain technology in financial technology and supply chain domain is creating wonders for crypto adoption. While in the former, use of these technologies is helping to speed up the transaction processes, the latter is benefiting from the safe and secured tracking competence of the blockchain technology. In addition, many countries are also opening up to the crypto friendly regulations which have further increased the adoption of digital coins by providing them with a legitimate status of a trading and transactional currency.