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Why Bitcoin could benefit from the current weakness of stock markets – 05.08.19

Stock markets are currently very weak. Bitcoin is a profiteer and is heading for annual highs. Almost no Altcoin can stay there for the moment. Exception in the Top20 today: Litecoin. By Gerd Weger

Stock markets were very weak for days, despite lower interest rates from the US Federal Reserve on Thursday. At the present time, the trade war between the United States and China aggravates the main threats to the global economy. If the President of the United States remains on the path to climbing, there could well be a major crash in the market. This is indicated, for example, by the steady rise in the price of gold. Precious metal is now more expensive than for more than five years. The course of Bitcoin cryptocurrency could also serve as an indicator. Bitcoin is seen by some as a way to store value, so similar to gold. The last interrupted high altitude flight of the Bitcoin route regains momentum. In the chart below, price changes for the last five days are overlaid. While Bitcoins can record a sharp 22% increase, the S & P 500 is at 2.7% or less, the DAX itself at 3.7%.

Why Bitcoin could benefit from the current weakness of stock markets - 05.08.19 2Source: coin-stars.de

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From a technical point of view, the situation at Bitcoin has improved significantly. The price is once again above the 50 day mark and is approaching annual highs of $ 13,600.

In May 2020, Bitcoin Halving will take place. Litecoin posted a significant outperformance in the months leading up to the split in half. This could also happen with Bitcoin in the second half of the year. Whatever the case may be, the weakness of the stock markets reminds many investors that Bitcoin can be an alternative. Currently, we are still talking about Bitcoin and its price increase. Now, more and more equity investors could be skeptical about the cryptography market and gain a foothold.

The so-called Altcoins are lagging behind Monday in the brilliant rise to Bitcoins, with the exception of Litecoins. This shows that Top20 parts have the best performance with a more than 10%. Reason: Halve on Monday morning. However, in recent days, the litecoin was relatively weak. Even in the half division, despite the fixed fixing of the Bitcoin price, restrictions were observed. Trader drove the price in the short term, but by 15% in the air before collapsing again.

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Source: Soda Pornchai / iStock