With Unrest Growing in Asia & S. America will we see higher highs?
Bitcoin is generally known for its volatility. It had some amazing highs and brutal crashes. During the past few months Bitcoin has been relatively stable. Its price hovered between $10,000 to roughly $12,000 without any significant breakthroughs. This is despite many known figures in Bitcoin making bold price predictions of the asset.
There have been many potential suspects fueling Bitcoin's rise. Some have claimed Bitcoin's price is just Tether price manipulation, others cite institutional interest. One very visible suspect is growing global unrest. Bitcoin is seen as by some as a safe haven or hedge when a fiat currency is falling in a similar manner to gold.
Mark Cuban, owner of the Dallas Mavericks and multi-millionaire has recently compared gold and Bitcoin.
Protests in Hong Kong have been growing over the past few months. What has started as protests against extradition laws to mainland China appear to be escalating dramatically. Currently the protests might lead to a full blown revolution attempt. Crowds are gathering in protests and demanding democracy and transparency. In response, the Chinese Military is gathering in Shenzen, right across from the Hong Kong border.
As a result of this unrest the Hong Kong Dollar and Chinese Yuan have been dropped sharply earlier this month. It has been speculated that wealthy Chinese and Hong Kong residents have been putting their funds in Bitcoin.
In addition to the unrest in Hong Kong, South America might also be following step. In an election that took place yesterday in Argentina, left wing candidate Macri has won the primaries. It is analysts claim that Macri might win the presidential elections in October. As result of this news the Argentinian Peso has dropped 25%. Should Macri be elected the Argentinian Peso might drop further. This could lead to a scenario where Argentinians like Venezuelans might make more use of cryptocurrencies and Bitcoin
Should global tensions grow we will likely see Bitcoin grow with them.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado