Posted 2 years ago | by Ben Armstrong
Current Bitcoin Price
Bitcoin is currently at $11,641,65 for a loss of 0.88% over the last 24 hours. However, that doesn't tell the whole story as Bitcoin rose over $12,300 over night before crashing back to the $11,800 before falling again back to the $11,600 range. The last 12 hours have been a wild ride for Bitcoin as we saw the infamous "Bart" pattern named for its uncanny resemblance to Bart Simpson's head.
The overall market cap is coming in at a shade over $305B & Bitcoin dominance has broken to the upside of 68% coming in at 68.1%. That number could move over 70% within the next 7 days.
World Events Heavily Affecting Bitcoin Price
This week Bitcoin has seen a lot of price action based upon world events. The U.S.-China Trade War heated up as investors saw the price of Bitcoin soar. Donald Trump imposed a 10% tariff on $300B of Chinese imports. China responded by devaluing its currency, the yuan, to a ratio of 7 yuan to 1 USD. This was heavily reported on during this week, but it isn't the only thing affecting the Bitcoin price.
As a side effect of the trade war, global stocks have been falling. Monday was the worst day for the Dow Jones all year as it fell 2.9%. Nasdaq was also feeling the pressure as it fell 3.4%. With stocks falling a few percentage points on average, Bitcoin saw a 3.2% rise. Just a week ago, Bitcoin was under $10,500 and now many believe finding support above $12,000 is not as far away as previously thought.
In another bold move and major escalation, Donald Trump has frozen all government assets of Venezuelan president Nicolas Maduro. The United States is taking swift action against the socialist leader because it believes that Maduro usurped his power by holding a fraudulent election.
Venezuela will suffer the same fate as countries such as Cuba, Syria, Iran, & North Korea. U.S. citizens & businesses are no longer allowed to do any business with Maduro or his supporters. Also, traveling to the United States is out of the question for Maduro & his supporters. The United States did stop just short of a full trade embargo.
While the Venezuelan government has its hands tied, the people of Venezuela are furiously trading Bitcoin against the Venezuelan Bolivar on LocalBitcoins.com. Peer to peer (P2P) Bitcoin transactions have spiked and hit an all time high. In a country where fiat hyperinflation has gripped the monetary system, Bitcoin has proven itself to be the greatest hedge of assets. It's important to pay attention to this model and how the Venezuelan people have responded. We may see this again in other countries in the future who deal with a financial crisis.
The question is whether or not all of these simultaneous world events have actually affected the Bitcoin price of if all of the talk of these world events affecting Bitcoin have been a "self-fulfilling prophecy." Basically, has all of the talk about Bitcoin being a hedge against world financial events actually made Bitcoin a good hedge against world financial events. This is where the psychology of markets comes into play and what makes technical analysis so good at predicting chart movements. Sometimes the buzz & hype around these events has more effect than an actual event.
Where Does Bitcoin Go From Here?
Just when it looked like Bitcoin was going to conquer $12,000, it immediately got rejected. If Bitcoin were to have held $12,000 then challenging the July high of $13,200 would have seemed imminent. However, with this quick rejection it is really hard to say where it is heading. It definitely seems like Bitcoin is on an uptrend despite the rejection. Investors will just need to look to see if Bitcoin starts establishing lower lows or if it can regain its momentum and charge back to $12k.
To see more about this story and others, check out BitBoy Crypto's latest video: