cryptocurrency

Closely Watching the Cryptocurrency Price Rally and Currency Manipulation

August 7, 2019 0 dan saada By dan saada

Mati Greenspan stated, “Due to the anonymous nature of Bitcoin, it’s extremely difficult to tell precisely as to where the demand is coming from. The supply factors, of course, have not changed by much.” He further summarized, “Some people have gone to the extent of stating that the rally we had in Bitcoin is a direct result of the falling Yuan.”

Several crypto-analysts who have been closely watching the crypto have to state that the current price hike of the Bitcoin cannot be attributed to just the falling of the Yuan.

The Litecoin halving event is considered to be yet another reason for the definite hike in cryptocurrency prices. Bitcoin as well is due to halvening during May 2020. When this happens, the Bitcoin reward to miners will decline to 6.25 from the current reward of 12.5.

There has been a significant pressure on the pound as the UK might likely leave the European Union without any trade agreement. While the falling Yuan is one possible explanation, the no-deal Brexit is yet another reason for why people are willing to hedge their value versus another significant leg down due for the pound sterling.

US retail giant Walmart is looking towards developing its crypto, and this has created expectations among investors that they might compete with Facebook’s Libra. The coming of Facebook’s Libra is yet another reason for the Bitcoin rally, according to many.

Meanwhile, the role of Bitcoin as a safe haven has been questioned by Kevin O’Leary of Shark Tank.

“Of all stocks, not one has been ever more than 5 percent, in any one sector, never more than 20 percent,” O’Leary further remarked “I teach this stuff! Therefore, you know you never go beyond concentrations of that nature! Fifty percent! Shame on you! That’s nuts!” He also interrogated, “If this is such a great idea, why there is only one Vegas game working?”

Pompliano when talking about Bitcoin stated that the asset is co-related in a negative way to every other kind of significant asset class saying: “[Morgan Creek Digital] has been banging the drum for over a year until now stating this is a non-correlated asymmetric asset. If you look at the times of global instability like in May, where we were lobbying tariff threats, and the trade wars were on, Bitcoin is up 55 percent. It’s got a negative correlation, -0.9 to S&P negative -0.8 to gold.”

The United States has recently called China a currency manipulator as the Chinese Capital was fleeing into alternative investments like cryptocurrencies.

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