Bitcoin, the flagship cryptocurrency, is up by nearly 8 percent in the last 7 days, as it surged from about $6,125 to nearly $6,700 at press time. Its rise saw various bullish signs emerge, potentially indicating the cryptocurrency’s may keep going up.
According to CryptoCompare data, Bitcoin fell from a near $20,000 all-time high late last year to little under $6,000 before recovering. In the past three months, data shows the cryptocurrency bounced off the $6,000 mark numerous times, clearly showing there’s strong support there.
Notably, trading volumes have surged as over $4.6 billion worth of the flagship cryptocurrency were traded per 24-hour period earlier this month. The figure has since declined to about $3.8 billion per day. Ethereum ‘s trading volume has seemingly stabilized at around $1.5 billion.
In contrast, USDT trading volume is significantly down, as data shows less than $1 billion worth of the stablecoin were traded in the last 24-hour period, against over $4 billion traded per day, on average, last week. This suggests cryptocurrency investors are more interested in trading between cryptocurrencies than from a stablecoin to cryptocurrencies.
Moreover, as Forbes writer Panos Mourdoukoutas put it, in the last seven days 95 cryptocurrencies out of the top 100 saw their price advance, while only 5 saw it decline, showing money is flowing into the entire sector, and not just major cryptocurrencies.
Per Mourdoukoutas’ words, this is the return of a “bullish technical sign that fueled the big cryptocurrency rally back at the end of last year.”
Using Bitcoin To Hedge
Bitcoin has been known to thrive in uncertain times, and has been trading at a premium in countries like Zimbabwe, in which fiat currencies are nearly worthless. As Mourdoukoutas puts it, Bitcoin is now behaving like “new gold,” as it’s being used to hedge just like the precious metal.
The annual inflation rate Zimbabwe experienced at the end of 2008 was 516,000,000,000,000,000,000 (quintillion) percent, the highest in the world. This is extreme but no fiat currency is immuned to hyperinflation. That’s why I #HODL #bitcoin. pic.twitter.com/SwVyExWLnk— Bitcoin $1M [#HODL] (@Bitcoinlife2012) July 5, 2018
Gold is historically seen as a store of value, and its price usually surges whenever uncertain times come. Bitcoin’s price performance seems to show the flagship cryptocurrency does the same thing, as it recently formed bullish candles as anxiety related to a potential trade war between the US and China has been growing.
While the SPDR Gold Trust remained flat in the past few days and Wall Street’s gains seem to have been erased by the potential conflict, the flagship cryptocurrency started thriving.