Bitcoin Price Hits $12,000 as Bulls Tackle Fiat Instability Head on

Welcome to the Cointelegraph Markets weekly newsletter that covers the main factors influencing Bitcoin's price in the week ahead...

View this email in your browser Markets Outlook Bitcoin Price Hits $12,000 as Bulls Tackle Fiat Instability Head on "Bitcoin is a techno tour de force."  — Bill Gates Welcome to the Cointelegraph Markets weekly newsletter that covers the main factors influencing Bitcoin's price in the week ahead. Another week, another surprise for Bitcoin — macro markets had barely woken up when the largest cryptocurrency suddenly raced back to $12,000. The abrupt volatility is a timely reminder that anything can happen in Bitcoin — can we guess at what the coming days might bring for investors? Continue reading to discover five factors that will likely have the most impact on the price of Bitcoin in the week ahead. One week, one big weekly close After an already bullish weekend, Bitcoin added the remaining ground to $12,000 within minutes overnight on Sunday. In the hours that followed, markets attempted to hold the new levels more successfully than before, hovering around $12,000. Whether or not firm support gets established this time, the timing of the rise is significant — BTC/USD concluded its highest weekly candle since early January 2018. This is especially important as a sign that long-timeframe performance is improving, rather than Bitcoin gains coming only from daily and hourly action. As such, longer-term large-volume investors may now feel comfortable enough to enter the market. Fiat flounders on instability Safe havens are still the name of the game among macro investors worldwide. Despite gold coming off its record USD highs, geopolitical instability has only been increasing, further dampening the prospects for national fiat currencies. This week, it is the turn of U.S. President Donald Trump to stoke tensions, with China sanctioning U.S. diplomats in a tit-for-tat move following Washington's banning of social media platform TikTok. Trump has also signed executive orders on coronavirus relief, which appears to offer less to the average citizen in the long term than their predecessors. Dollar weakness may further be joined by developing nations, many of which could feel the fallout from Turkey's currency crisis, resulting in Bitcoin hitting new record highs against the lira. Bitcoin heads away from correlated assets The $12,000 push places Bitcoin in contrast to assets with which it has previously shown a significant correlation. Stocks remain decidedly lackluster on the back of the geopolitical situation, while gold ending its rally places BTC as a firm investors' favorite. Against a backdrop of correlation reaching 95% for the S&P 500, for example, the likelihood of Bitcoin striking out on its own beyond the immediate future would appear less convincing. Futures gaps point lower Ignoring external factors, meanwhile, a classic technical sign suggests that Bitcoin could soon correct — even if briefly. CME Bitcoin futures markets now have gaps at $11,700 and $9,700 — both are lower, and Bitcoin has a historical tendency to fill such blank spots in the order book. Mostly, it only takes a matter of days. Institutional interest is a key target for the cryptocurrency business sphere at current price points. Grayscale, the investment management giant with multiple crypto funds, has seen continued dramatic growth in its products in recent weeks, with total assets under management topping the $5-billion mark earlier this month. Stock-to-flow reassures Back within the Bitcoin realm, everything is going exactly according to plan, one analyst says. PlanB, the creator of the stock-to-flow price model that forecasts potential six-digit prices by 2021, confirmed last week that Bitcoin is plotting its course along its predicted trajectory to the millimeter. Stock-to-flow is based on Bitcoin's halving cycles, and the impact of the latest halving event in May is now beginning to trickle through, PlanB thinks. 1.5 million people follow us on social media Download our official app:

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