Bitcoin's (BTC) latest trek above the $12,000 mark came to a quick halt a few hours into its rise, with prices suddenly crashing by over $1,000 just before the US session's final bell that sent momentary jitters around major crypto markets.
At the outset, bitcoin encountered a huge pullback, followed with a slight movement near the $11,210 mark that provided brief support. Still, BTC's local daily peak near the $12,350 level was the biggest price boundary since the first week of July.
In a report late Wednesday by Cointelegraph, chief executive officer Jeremy Allaire of digital currency payments company Circle suggested that disturbance in the macroeconomic sector played a major impact for bitcoin's recent rally.
Bitcoin has also made an abrupt ascent early last week, with its price climbing over 21% during the past seven sessions and rising more than $500/BTC less than an hour late Wednesday, only to plunge back again.
Many virtual currency analysts were quick to note that bitcoin's rally alongside the decline of the Chinese currency means it is fast emerging as a safe-haven asset, despite its shakiness and the incapability of even the brightest minds on Wall Street to precisely know how the crypto will behave.
The world's most popular crypto, bitcoin has been on a bullish run against the US greenback, however, Wednesday's unexpected price swing was the most crucial one as BTC rose above the $12,000 mark with a strong surge. Although, in the last four hours since, BTC has failed to keep its pace above the $12k region.
Bitcoin bulls are determined about getting a good ounce of support for their favorite crypto. This comes after the electronic fiat tried and failed to sustain its advance beyond the $12,350 intraday high. The waning aggressiveness indicated a gap that the bears took advantage of.
Bitcoin, despite being a heavily-traded digital asset with billions of dollars in total volume daily, still struggles with extreme volatility caused by the so-called "market whales" that move big tranches of virtual money at below or above normal market prices.
Meanwhile, as Cointelegraph noted, the impact of the China-US trade dispute is largely seen as a boon for cryptocurrency in general. As tensions heightened, stock markets around the globe suffered. According to market analyst and trader Tim Draper, Nasdaq Composite and the Dow Jones Industrial (DJIA) collapsed by 2.8% and 3.5% respectively, their worst trading session for 2019.
