According to the latest report, the recent flash crash experienced by Bitcoin was brief, and the currency is back on track with its gain of double digits. The news of banning all the crypto related derivatives by the regulatory body Financial Conduct Authority was not able to detract the coin’s gain for long.
After the bouncing back from the maintenance level of nine thousand and eight hundred dollars, the surge of Bitcoin was way above the danger line. At the time of writing this, Bitcoin was trading at eleven thousand and four hundred dollars, which is thirteen percent above the weekly low, and it seems to be getting back to its yearly high at thirteen thousand and seven hundred dollars.
The cause of this rebound seems to be that the recent correction, in which almost four thousand dollars from the Bitcoin prices were wiped off, has now been entirely over. As the market trend remains bullish, the flourishing trading of the derivatives on the exchanges of BitMEX and CME can confirm that the institutional interest is still high. The founder and Chief Investment Officer of Ikigai Capital Travis Kling, stated that the decision of reversal of quantitative tightening by the Federal Reserve triggered uncontrolled spending in all the digital assets.
However, there are other explanations as well, one of which is that the institutional investors are getting ready for the world economic crisis. The Governor of Bank of England Mark Carney stated that international trade war and the Brexit deal are steadily increasing the possibilities and not the certainties and this tends to compel the investors to move towards the safe assets arena.
Recently the gold prices also surged right after the G20 Conference in Japan. Since then, a positive trend has been witnessed as the trade war between China and the U.S subsided. According to the Senior Market Analyst of eToro Mati Greenspan, the correlation between the gold and Bitcoin prices is all-time high since 2016, as both the assets are moving in ‘lockstep’ since the start of last month. He further stated that it seems as if Bitcoin has now started to react to external influences.