The resilient cryptocurrency, bitcoin, continues to make its charge upwards despite a challenging macroeconomic environment. When all asset classes seem to be flat to down as of late, bitcoin continues to rise & with this increase come compelling takeaways.
Bitcoin appears to be negatively correlated to the rest of the market, specifically housing and the commodities. Housing is starting to swoon a bit and commodities are getting absolutely smashed. All the while bitcoin continues to go up. Why? With the majority of bitcoin volume being traded / transacted in China, it appears the Chinese view bitcoin as one of the few avenues left to safeguard their wealth from the traditional asset classes of commodities and housing.
Volumes on the exchanges are starting to hit new all time highs on a daily basis. With increases in volume come increases in price validity as this shows the bitcoin market is starting to mature. More participants mean more interest, and more interest means higher prices. Bitcoin is starting to become a legitimate contender in the marketplace.
All press is good press as the controversy surrounding the potential real “Satoshi”, Craig Wright of Australia, has garnered more attention for the cryptocurrency. The general public doesn’t quite know what to think about bitcoin yet, however everyone likes a good story.
While there are probably a plethora of additional factors to cite, the gist of the matter is that bitcoin is trending upwards. It will be a violent march to the top fraught with volatility, but man it’s going to be a helluva ride.