We’re rounding up what has been one of the most successful weeks for Bitcoin with yet another record for the cryptocurrency, which for the first time had surpassed the price of gold. During the past couple of days the price has been on a steady rise on the eve of the first Bitcoin ETF approval, and some reports suggest that the highest volume is still coming from China, despite the tightening of regulations.
In other news from the Bitcoin world, Australian computer engineer, Craig Wright, who has claimed to be Bitcoin inventor Satoshi Nakamoto is teaming up with gambling entrepreneur Calving Ayre to file a host of patents tied to Bitcoin and blockchain technology. The story was picked up by Japan Times, who say the pair is likely to mold the future of Bitcoins and its underlying technology.
Craig Wright and his partners have filed over 70 different patent applications in Britain, with plans to file more in the future, according to sources inside his business and internal correspondence. One of the reasons for filing patents is reportedly the increasing belief and support in blockchain technology, which might overtake traditional pay systems in the future
Bitcoin Growing Strong
In the time since our last update, the price of Bitcoin broke out of the $1,185 range thanks to the prevailing buying mood on the market, and current signals are showing little signs of it slowing down. The biggest rollback was last night, when the price dropped to $1,244, but ever since then it has stayed within the $1,255-$1,265 range.
The volume has been rapidly increasing along with the price and is now at three times its value of two days ago, or $378,525,000, while the market cap stands at $20.4 billion. With such high interest, the price is likely to move even faster where the market winds take it.
As to our technical analysis, the overall signal is a strong buy on both long-term and short-term time frames, with all 12 moving averages and 7 out of 12 oscillators being a pro-buy. Little difference can be seen in short-term charts, which means that the price is likely to keep growing. However, a few oscillators are also in the “overbought” zone, so stay prepared should buyers get tired.
Gold Becomes Cheaper than Bitcoin
The biggest news this week was that for the first time in Bitcoin history the cryptocurrency is trading for a higher price than gold. This important milestone was set last night, when BTC price reached $1,268 at the same time when the price of gold stood at $1,233 per troy ounce. The price push is allegedly due to high interest in China, where tighter restrictions sent the price crashing only weeks before.
During the past year, Bitcoin’s price has grown unbelievably fast, from the $420 levels it traded during winter of 2016 to the current $1,260, while the price of gold is very close to what it was a year before, and even a tad lower. The difference in growth, but also the recent drops in gold price are seen as the main culprits before this interesting record.
There are also other factors that have a similarly significant role, like the proposition of the first Bitcoin ETF officially recognized by the SEC, which is expected to lend more credibility to Bitcoins and even push the price further, but also Bitcoin’s practicality. As Adam White, head of US GDAX exchange told the NBC, you can’t chip of gold to buy a coffee at Starbucks, but you can do it with Bitcoins.