Another bitcoin rally is in the offing and this time, it's for real. Alex Karasulu, founder/CEO of OptDyn Inc., revealed this and other ideas, which have bitcoin and other major cryptocurrencies as a good diversifying asset in the midst of hard times for the US, Forbes reported. The cryptocurrency ecosystem is also a good alternative to the 'existing fiat currency system,' Karasulu added.
The reason behind all of this is the US economy, which had become fairly 'unstable.' The bullish uptick happened because of the 'destabilization' of the economy, where the currencies are indexed to the US dollar. The trade tariffs and all the various problems happening have markets spooked to the point that they're looking for an alternative, where some have cryptocurrency as a fallback.
The trade war, for instance, was used as an example. The tariff dispute turned ugly in early June. During that same period, cryptocurrency rallied but pulled back again by the end of that month, when the US and China agreed to discuss the problems. Given that, Karasulu noted that the weakness of the US dollar-in a global sense-is not going away any time soon.
Coin Telegraph reported on the perceived dominance of bitcoin, and it's been impressive so far. Its value has been up by 58.6% and the rally helped with the market capitalization of cryptocurrencies, which has crossed the $325 billion territories. This had been backed by an increase of open interest in bitcoin futures, which hit an all-time high on the CME on June 17.
The surge that has been happening in the past couple of days made others nostalgic about what has happened in 2017. Bitcoin has managed to climb up to the $10,000 to $11,000 mark, where values have finally reached and broken through the $12,000 mark. The price had actually recovered from decline, where it fell south of $12,000 on three separate occasions.
Ethereum, for its part, managed to move past the $225.49 to $280 range during the same month. It quickly rallied past $280 to reach $322.06 and came within just breathing space of $335. It then came moving back below $32206 due to profit booking. It just showed how bitcoin remained a viable asset class to some.
There is a lot of uncertainty due to the US-China trade dispute these days. It does look like fiat currency's loss is bitcoin's gain, and if the trend doesn't change, then the magic of 2017 may once more make an appearance this year.
