Last week Bitcoin’s price dropped to $437, but on Monday it rose back to $447. As we see, the reaction of Bitcoin to the stock market crash is continuing. We asked more experts to comment on the situation with the price of Bitcoin during the latest stock market crisis.
Mike Lorrey, the co-creator of cryptocurrency Galactic and cryptocurrency BitGold said:
“A further key issue wrt BTC price is what’s happening in Chinese markets. The collapse of stock markets and halts to trading there will have two contravailing reactions: a) traders will seek to move assets into something more portable and tradable outside chinese markets, like btc, and b) traders who have taken losses in regular securities will seek to liquidate btc to make up for those losses. In the US, we see Obama jumping on new activism in dictatorial actions on gun control, while Wall Street is falling due to fallout from the Chinese situation. People are reacting to both by a new rise in Gold, Silver, and BTC as well as newer scarce metals like platinum and rhodium that are also industrially useful as catalysts. Just as the precious metals have catalytic properties, btc is rising as its utility as a catalyst for smart contracts is becoming more evident with useful tools that enable that”.
Patrick Dugan the CFO at Omni Foundation said:
“How much do you really think the Chinese bitcoin investment community are hurting from Chinese stocks? Even if there are 30% losses on 50% of one's portfolio with BTC being up 100% in the other half, unless one were barely able to invest and living off the trading income you could easily let your winners run as a patient investor. Nice analogy with the catalytic approach”.
Today, January 11, 2016, some important news releases from the US, Europe and China are expected. We believe that Bitcoin will try to gain a foothold at the level of $450 and then overwhelm the target level of $460. The level of support for today is $435. The resistance level is $455.
In our articles, we try to pay attention to the influence of Asian trading on the Bitcoin price fluctuations. Given the large volume of transactions on the Chinese exchanges, we can assume that Chinese investors are now buying Bitcoins more often because of tightened state control over money movement, as well as limitations of the Dollar amount in circulation. Can this factor have an impact on the price of Bitcoins in the medium term?
This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell Bitcoins.
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