Bitcoin Struggles in a Massive Week with Wild Price Swings
Bitcoin (BTC) is having a hard time this week with wild price swings keeping traders on their toes. The BTC price dropped 12% a week ago. And recently, it jumped around $10,000 per BTC as bullish investors grabbed the chance to purchase under the psychological level.
Moreover, the former chief executive of Prudential Securities named Labor Day on Monday, September 7, 2020. And this became a possible turning point for Bitcoin adaption and investment; the crypto market might go into a big week.
In the previous month, the chief executive of investment company Sanders Morris Harris, Goerge Ball, expects a boost of BTC buying following Labor Day.
Ball, who was also a former chief executive of Prudential Securities, brands the current global markets as stuck in the ‘summer doldrums.’ And this is while investors are watching for a spark that he believes will fuel in early September.
Goerge Ball is the latest in a growing line of high-profile, established investors. And prominent Paul Tudor led this in May. Tudor has espoused Bitcoin as a potential hedge against the inflation they see arriving due to unprecedented coronavirus-induced stimulus measures.
BTC and crypto traders became spooked this week because of a sell-off in the equity markets that saw the S&P 500 marked its first weekly loss in six weeks. Then, the Nasdaq showed its worst weekly performance since March.
Since late July, the Bitcoin price has stepped back under the key $10,000 level on Friday for the first time. Because of that, it dealt a blow to a lot of bullish BTC investors who increasingly claimed that it started behaving as a so-called safe-haven asset, like gold.
Chief technology officer at Bitcoin and crypto exchange Bitfinex, Paolo Ardoino, wrote, “Bitcoin’s volatility is a key characterictic as an asset class.”
Gold Bug Peter Schiff
Meanwhile, Gold bug Peter Schiff has always spoken out against Bitcoin. But now, he might be admitting that there’s at least some flaw in his predictions. And this happened after he acknowledges that the coin did not collapse as gold surge to a new all-time high the previous month.
During a Twitter exchange with Tyler Winklevoss – started on September 6, 2020 – Schiff traded words with the Gemini co-founder about BTC’s rise to a yearly high of over $12,000 on August 17 and its stop below $10,000 last week. As Winklevoss foresaw the digital asset’s baseline for all future dips at $10,000, Schiff became more bearish by saying that Bitcoin might be consolidating before a crash.
Schiff wrote, “The more the 10k support level is tested, the weaker it gets.”
He added that markets do not always give investors a lot of chances to purchase the bottom.
But still, Twitter user Sharkybit was not willing to let the gold bug’s word slip away. He showed a screenshot of Schiff’s July 5 prediction that Bitcoin’s price would decline as gold surge.
Schiff admitted that he was wrong about Bitcoin but right about gold. He said that BTC somehow got through resistance and rally to as high as $12k due to a large part in a ride on gold’s coattails and a massive TV advertising buy by Grayscale.
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