Crypto: Bitcoin price update on August 6
Crypto investing is relatively a new business in comparison with other business activities. However, several currents and potential investors indicate that people are willing to invest in cryptocurrencies. Global economic problems and trade war between the U.S. and China increased the in digital currencies. Bitcoin is the number one cryptocurrency in terms of market capitalization in the world. It is not surprising that the price of Bitcoin continues to rise as 85% of supply has been mined.
Price of Bitcoin
On Monday, the price of this cryptocurrency reached $11,860, which was the highest point in three weeks based on CoinDesk data. It means that nearly 70% of global crypto currency market’s value belongs to Bitcoin. It is worth mentioning that the Bitcoin price continued to rise, and at the moment price per Bitcoin is $12,144. There are several reasons which helped Bitcoin to double its price in the last three months as of Monday.
Analysts started to compare bitcoin with gold. Some of the analysts identify bitcoin as “digital gold.” As mentioned above, the trade war was one of the factors which contributed to the rise of Bitcoin. During previous week U.S. President announced that he would impose additional sanctions on Chinese goods. China responded by letting its currency yuan to fall to below 7-per- dollar level. This happened for the first time in more than a decade.
This decision raised the risk of a currency war. Chinese investors invested a huge amount of money in cryptocurrencies during last years. One of the possible solutions for them is to use Bitcoin and other cryptocurrencies to minimize their losses due to yuan depreciation.
Further escalation will increase the demand for Bitcoin. Crypto investing has considerable potential to become even more popular among investors. The price of Bitcoin is far from its best result when the price per Bitcoin was close to $20,000 in 2017. However, recent developments indicate that the price of digital currencies will continue to increase in the upcoming days.
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