Bitcoin is once again on the brink of hitting the crucial psychological $15,000 level for the first time in nearly two years, according to the CEO of financial consultancy giant DeVere Group.
He said the top-ranking cryptocurrency is gradually evolving as a digital form of gold, according to The Independent.
“The world’s largest cryptocurrency, Bitcoin, jumped 10% as global stocks were rocked by the devaluation of China’s yuan as the trade war with the US intensifies.
This is not a coincidence. It reveals that consensus is growing that Bitcoin is becoming a flight-to-safety asset during times of market uncertainty.
Bitcoin is currently realizing its reputation as a form of digital gold. Up to now, gold has been known as the ultimate safe-haven asset, but bitcoin – which shares its key characteristics of being a store of value and scarcity – could potentially dethrone gold in the future as the world becomes increasingly digitalized.”
At the time of writing, Bitcoin is trading at aroundf $11, 385 and has a market cap of about $203 billion, according to data from CoinMarketCap.
Bitcoin and S&P 500 correlation fading
An analysis conducted by cryptocurrency prime dealer SFOX gave a significant amount of insight into how correlated various assets including gold, S&P 500, Ethereum, Litecoin and Bitcoin Cash are with Bitcoin. It revealed these assets no longer move in the same direction as Bitcoin
The stock market will hit a record high soon
Even so, CFRA’s Sam Stovall warned the major indexes could break through their all-time highs in the next few days.
“I think what we went through was a retest of the May pullback and it ended up being successful. We are probably coming out of this pullback, and we’ll probably get there quickly. History says we’ll get there by the end of the month, meaning by the end of the month we’ll probably close with a new all-time high.”