Bitcoin could be setting the ground for a possible upward movement, although the negative corrections in the market can serve as a refuge for the stock market, taking into account that institutional money can enter with Fidelity and with Coinbase.
After Binance announced the limitations of trading in certain countries like Venezuela, or even states in the US, it is no longer considered decentralized, and taken as bad propaganda in previous times, it has generated some noise with movements in general for all the altcoin.
As long as the market continues to triumph on the institutional market, there is a possibility that decentralized exchanges can be absorbed by large companies with considerable relief, and yet this does not influence as much as the recent event with the United States and China.
After the economic combat of these two countries, it can be perceived in the coming months that there is a significant rally due to the stock market downturn and difficult markets and an ABC, creating greater attractiveness in commodities after the eve of a recession.
Based on this, it can positively affect Bitcoin, because it will serve as a refuge with a constant movement for people looking to avoid losses in the market.
There is a possibility that Bitcoin touches the 8800$, where there will be strong resistance, and if it manages to continue the movement at 8,900$ and break the scale, it is very possible that it can rise to 10k, we must be very attentive and that nothing is currently sung, but if there is a coincidence with the stock market crash, these changes may occur.
In other news, the chief investment officer said this week that a sharp rise in Bitcoin price indicated that investors were unsure about the Federal Reserve’s stance on interest rate cuts, as well as about the outcome of an ongoing trade war between the US and China mentioned above, that kept buying sentiment weaker in both the Western and Asian stock markets.
The growing exposure for Bitcoin has created a demand for crypto in times of stock market uncertainty. Despite claims that Bitcoin is devoid of value, the cryptocurrency competed with gold as an alternative asset class for investors fleeing the S&P 500, a trend likely to continue if the DOW takes a hit.
Undoubtedly, Bitcoin currently has the baton of the market, considering that the other currencies will not make huge differences at present while the number 1 in Coimarketcap does not generate changes, so many traders recommend maintaining caution with the other crypto.
The next Bitcoin block reward halving is estimated to occur by May 2020. Currently, about a year before its halving, Bitcoin is up substantially year-to-date and is demonstrating strong momentum in what many analysts consider as the start of a bull market.
Although short-term volatility is expected given the gain of the Bitcoin price in the past six months, the macro trend of the asset remains positive as shown by key technical indicators.