- Bitcoin price just hit the all-time high at $17580.
- Gold and Bitcon price inversely proportional correlation confirmed.
- Bitcoin price is likely to maintain high in the next quarter.
The king of cryptocurrency just broke all previous records reaching a new all-time high hitting the $17580 mark. Bitcoin price rose steadily from the $16600 level to the $17200 mark and from there rose to the $17580 mark in somewhat of a flash rise and rising at the time of writing. This is a new history in the making, and it means that the king of cryptocurrency is now one of the strongest currencies on the global scale.
Bitcoin price technical indicators show that the king of cryptocurrency is facing a strong bullish momentum at the moment, with strong buying signals indicating a further rise. Out of the 17 moving averages, 16 stand firm on strong buying, and only one signal stands neutral. While out of the 11 Oscillator signals, six stand neutral, three stand firm on strong buying, and two stand on selling.
Bitcoin price correlation with fiat and Gold
Bitcoin price correlation with Gold and different fiat currencies is more like a clash of titans where Bitcoin is more of a new contender, while the fiat and Gold are the oldest players in the game. Gold prices are considered inversely proportional with Bitcoin price, and given that the king coin works on the proof of work concept the industry is energy dependant, but that’s a separate area.
The chart above confirms the negative correlation between the two of the titans contending for power in the global economic arena. The differences, however, lie in the cost to market delivery ratios, where Gold is mined in various parts of the world, Bitcoin is a global force that is consuming energy in the global arena.
Gold is the dinosaur of the economic world, Bitcoin is the latest innovation that is now giving way to clean energy. Although it may sound absurd since Bitcoin has been bashed for high consumption of electricity and leading to electricity theft. On the other hand, the same issues are now giving way to the use of clean and green energy.
On the other hand, Bitcoin price correlation with fiat is more of a directly proportional relationship. A rise in global economic stability causes a rise in Bitcoin prices. In the post-COVID-19 world Bitcoin and other cryptocurrencies’ adoption is rising to the level of synonymity with fiat currencies. China, the United States, and various other countries are jumping onto the central bank digital currency bandwagon.
The latest milestone in Bitcoin history is further enforcing Bitcoin’s value as the cryptocurrency market leader with over 300 billion United States dollar worth of market capital in circulation. The new currencies making their way into the arena would only help the latest developments necessary to keep the balance in the post-COVID-19 arena, and rise the global economic stability to ensure a stable environment across the globe.