In yet another proof that 2017 is indeed the year of Bitcoin, Bitcoin’s price sets a new all-time record by surpassing $4,600 per 1 BTC during the past day. The latest explanation, so it seems, is that it was the Asian markets that brought the price up following the launch of North Korea missiles over Japan. However, current indicators are showing that the “panic” is slightly wearing off.
In other interesting news, Llew Claasen, head of the Bitcoin Foundation, speaks about the risk of investing in Bitcoin at the Tanzania TEDGlobal conference, the BBC reports. Claasen attended the conference to talk about the potential of Bitcoin in countries with volatile economies but not without warning that people shouldn’t invest in it more than they can afford.
Namely, speaking to the BBC he said that Bitcoin wasn’t really a great form of cash right now but more of a digital gold that enables users to keep savings outside of regular financial climates. According to him, this is the direction Bitcoin is heading as he predicts a future where people will have a separate wallet with various cryptocurrencies that would allow them to preserve their savings.
Bitcoin Buying Subdues
During the past week since our last update, Bitcoin once again saw great gains, reaching a nearly 70% increase since the beginning of this month. The lowest point during this time was hit on Friday when the price reached $4,166.00, while the highest point of $4,632.51 was reached early today.
During the past week, trade volume has remained consistently high, never dropping below $1.5 billion, especially during the past 24 hours when it reached $2.6 billion. The market cap, on the other hand, is at $75.6 billion.
Our technical analysis shows that the market is currently at a stand-still, with 7 out of 12 moving averages sending a buying signal, while 6 out of 12 oscillators are indicating a selling pressure. The SMA 100 is still over the SMA 200, indicating less resistance to the upside.
However, even though the overall signal is neutral, the bearish pressure is increasing to show there might be a change of direction soon. With the current high-volume trading, the price seems to be headed for consolidation above $4,550 with the next direction up to the predominant trading winds. Remember to keep your eyes open for changes, especially if new political tension arises.
North Korean Crisis Boosts Bitcoin?
Interest in Bitcoin doesn’t seem to slow down in the past few weeks, as the cryptocurrency keeps breaking through new price and volume records. Some analysts believe it’s the positive perception of the public that’s boosted the price up, while others believe it’s also the increase in Bitcoin-related businesses and other global trends that contributed to the price surges.
Accord to a recent CNBC update, the North Korean crisis is one of the biggest contributors during the past week, with data showing that trades in the South Korean Won and the Japans Yen – the two countries closest to the North Korean threats – accounted for nearly 50% of all Bitcoin trade volume.
However, what’s interesting to note is that while Bitcoin has been going up, the stock markets closed lower after North Korea fired a missile over Japan, with the European market falling down over 1% and both the US and Asian stocks closing lower. It seems that Bitcoin is really turning into the digital equivalent of gold, although it’s still far from enjoying the same status, as there is only $75 billion worth of Bitcoin in circulation while gold has $7.5 trillion.