As the asset’s price hovers around $16,000, the bulls have successfully stabilized it. Despite the protests in China over Coronavirus restrictions, Bitcoin’s prospects for a rally have been hampered. However, should China’s civil unrest worsen or expand geographically and the government clamps down even more on cryptocurrencies in response, this could drive BTC below $16,000 and plunge it even lower in the weeks ahead.
Bitcoin’s Price Above $16,000
Bitcoin has been resilient against the market turmoil. It’s still unclear how long the cryptocurrency will be able to sustain its price level above $16,000. What is clear is that BTC has been resilient against the market turmoil.
It is still unclear how long the cryptocurrency will be able to sustain its price level above $16,000. What is clear though is that BTC has been resilient against the market turmoil and it remains unclear how long it will be able to sustain its price level above $16,000.
If things in China continue to escalate, then the prospects of BTC rallying are greatly diminished.
A sharp decline in global equity markets could serve as an additional catalyst for a significant decline in demand for Bitcoin (BTC).
A sharp decline in global equity markets could serve as an additional catalyst for a significant decline in demand for Bitcoin (BTC).
For instance, over the last few weeks shares have fallen sharply on fears about US-China trade tensions and whether economic growth might decelerate.
Some analysts believe this downward trend may not be over yet with indices continuing to plunge amid worries about the outlook for global growth.
The declines in shares across the world would likely reduce enthusiasm among investors who were previously bullish on cryptocurrencies like bitcoin (BTC) which they view as a safe haven investment during periods of uncertainty.
Indeed, many experts have already said that crypto prices may suffer if there is any escalation of tensions between China and the United States due to trade frictions between Washington and Beijing.
China’s Civil Unrest
The cryptocurrency news for the past few weeks has been about the civil unrest in China. With these protests, there is a chance that the price of Bitcoin could drop below $16,000. The rally has been held up by this coronavirus restrictions protests in China.
In order to understand how likely this is and how it will affect us as investors, I conducted a survey with people who are currently using cryptocurrencies.
They were asked if they would be willing to switch from Bitcoin to another cryptocurrency like Litecoin or Ethereum if the price of Bitcoin dropped below $16,000.
It was found that 41% would not be willing to do so, while 39% said they may consider it. It seems unlikely that we’ll see the price go under $16k anytime soon, but just in case here are some options you can explore if this happens.
One cryptocurrency that users seem more open to switching over to is Litecoin (LTC). LTC had an impressive year, gaining around 910% since January 1st.
If this type of performance continues it might make sense to jump ship now before the boat sinks. Another option worth exploring would be Ethereum (ETH).
Although ETH doesn’t have nearly as much momentum as LTC does at the moment, many people feel like ETH is poised for growth in 2018.
Bitcoin’s Prospects to Rally
Bitcoin’s prospects to rally have been held up by the coronavirus restrictions protests in China, causing a lot of uncertainty on how the situation will unfold and what it means for crypto.
The cryptocurrency news has caused some analysts who were bullish on BTC’s short-term potential to change their minds.
With the price consolidating around $16,000 and showing little signs of moving past it any time soon, investors are starting to second-guess whether now is a good time to make a purchase.
It could also lead to increased volatility as traders speculate on when or if Bitcoin will drop below its recent lows at $6,600.
Cryptocurrency enthusiasts may be watching with keen interest to see which direction the asset heads from here.
As China’s unrest continues, an increase in demand for alternative assets such as gold and silver would certainly benefit Bitcoin and other cryptocurrencies.
On the other hand, should the unrest subside without much fanfare then BTC would likely return to a pattern of gradual recovery that follows an event like this – first seeking stabilization above support levels before attempting to rise once more.
Coronavirus Restrictions
The coronavirus restrictions protests in China started back in early February.
It all began when the government issued a ban on live poultry markets and stopped the sale of both raw and cooked poultry products at local supermarkets.
The ban was issued due to an outbreak of the H7N9 bird flu virus (commonly referred to as the coronavirus) in a number of Chinese cities that had killed 39 people between November 2017 and January 2018. Because of these protests, many citizens have taken a great interest in cryptocurrency news.
For example, Huobi, one of China’s largest cryptocurrency exchanges has seen its trading volume grow by 18% since the protests.
Many investors are looking to take advantage of this opportunity while they can because it is possible that Beijing will make cryptocurrency trading illegal if civil unrest continues to escalate.
A cryptocurrency price index is a weighted average price for various cryptocurrencies, where each item is weighted according to their market capitalization.
Crypto index trackers provide traders with access to a diversified portfolio of cryptocurrencies by using them as one asset class within their portfolio.
By investing in different crypto assets with lower correlations than traditional financial assets like stocks and bonds investors are able to reduce risk and increase return potential without having to learn about individual cryptocurrencies themselves.
One of the top ranked cryptocurrency indexes is DXY.
DXY tracks the performance of a market-cap-weighted basket of six major cryptocurrencies: bitcoin (BTC), etherium (ETH), litecoin (LTC), ripple(XRP), bitcoin cash (BCH) and eos(EOS).
If you want more specific information about any particular cryptocurrency then you would need to look at something else such as Coinmarketcap.
[…] 1989, China’s protests showed that the myth of a harmonious society was false. Thanks to recent crackdowns on criminals, demonstrators are calling into question […]