Bitcoin Rallied Hard Yesterday

Bitcoin Rallied Hard Yesterday

Investors went to sleep last night feeling a little smug after Bitcoin continued to pass expectations and rally up beyond the highly sought after $12,000.00 mark. This is significant given the rather depressing year Bitcoin has seen previously. Let’s remember that the historical all time high for Bitcoin currently sits above $20,000.00. These latest movements indicate that finally Bitcoin is back on it’s way up and could soon enough breach all of our expectations and move on beyond that $20,000.00 mark.

Before this inspires you to spend your life savings on Bitcoin, please do remember that the cryptocurrency markets often experience periods of high movement, followed by correction. The markets are volatile and the price of Bitcoin could fall at any given moment. Do your research before you buy and ensure you only invest money that you can afford to lose.

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So, what is going on here? There are a number of things that can make Bitcoin climb and likewise, there are a number of theories floating around that attempt to explain why this current rally is happening. The general consensus however is that this is down to political turmoil and traditional financial uncertainty. Globally, many currencies are starting to decrease in value, this uncertainty is making people turn to alternative means to secure the control of their own finances. Bitcoin is a great first step here and finally people are starting to realise that. As they buy Bitcoin, money floods back into the markets and when that happens, the price of Bitcoin naturally starts to rise.

According to the Express, Simon Peters and analyst at crypto firm eToro has weighed in with his thoughts on the current rally:

“Simon Peters, analyst at eToro, told It’s no coincidence that Bitcoin's surge over the weekend has coincided with Donald Trump’s announcement of tariffs on $300billion worth of Chinese goods. The yuan has fallen against the dollar to levels not seen since the 2008 financial crisis, and Chinese investors are casting around for alternative assets for their wealth. Gold, the traditional haven asset, has been a beneficiary of some of this investor uncertainty. Given that Chinese investors make up a large proportion of crypto investors, there’s a strong possibility some are backing bitcoin’s chances against the yuan. Mr Peters told CNBC that Chinese investors may seek to diversify as the yuan declines.”

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