After a week of continuous losses that wiped out hundreds of billions in the value of crypto-assets, Bitcoin once again failed to prove its position as a safe haven in times of turmoil. Once seen as a hedge against market turmoil, then described as “digital gold” for the blockchain era, “Bitcoin” stabilized in Singapore on Friday morning after falling in parallel with global equity and credit markets, trading near $109,000, according to Bloomberg data. Bitcoin hit a record high of $126,251 on October 6. Record Liquidation Wave A few days later, rising trade tensions between the United States and China sparked a record liquidation wave, coinciding with sharp selling that swept most major cryptocurrencies. Also Read: Trump: Impose 100% Additional Tariffs on China. So far, the market has struggled to achieve a sustainable recovery, despite the expansion of major companies such as Kraken, Circle, BitGo and Ripple in the areas of regulated finance, seeking licenses for trust service providers and developing payment systems. and card-based products. Rachel Lucas, an analyst at BTC Markets, said: “What is striking is that the collapse coincided with large companies seeking banking licences.” She added that the shift to the traditional financial structure “reflects a strategy to hedge against volatility while at the same time aiming to improve credibility.” Trade tensions pressure high-risk assets Risks from the US-China trade dispute continue to cast a shadow over high-risk assets, extending far beyond the cryptocurrency market. The collapse of First Brands Group and Tricolor Holdings fueled fears of unknown credit losses, while fraud-related write-offs or write-offs at Zions Bancorp and Western Alliance wiped more than $100 billion off the market value of US banks in one day. Gold Shines and Bitcoin Disappoints While traditional havens like gold and silver continue to hit new highs, Bitcoin is disappointing investors. Also read: The price of an ounce of gold records a new high above $4,200. Bitcoin fell 6.3% during the week ending October 12, its biggest loss since the start of March, without yet showing any signs of recovery. The same goes for most other cryptocurrencies. “I see cryptocurrencies as the canary in the coal mine, reflecting the market jitters due to rising credit concerns,” said Matthew Hogan, chief investment officer at Bitwise. The $107,000 level is considered an important support level for Bitcoin in the next phase. “A decisive drop below this level could open the door to further losses,” Lucas said.
-
-
-
-
