Bitcoin has posted a decent recovery today after facing a significant amount of selling pressure yesterday. This recovery has allowed most major cryptos to climb slightly, although the recent drop may have caused some technical damage to the aggregated crypto markets.
Now, analysts are noting that this recent volatility may have thrown cold water on the bourgeoning “Gold 2.0” narrative that many analysts and investors have been propagating as of late.
Bitcoin Drops Below $9,500 as Sellers Build Strength
At the time of writing, Bitcoin is trading up marginally at its current price of $9,480 and is down slightly from its recent highs of over $10,200 that were set yesterday.
This latest price drop is simply an extension of the downwards momentum that was sparked after the parabolic rally fizzled out at $13,800, a movement that signaled that the recent momentum that BTC incurred throughout the first half of 2019 was unsustainable.
Importantly, many analysts have been noting that Bitcoin will likely require a period of consolidation before it begins climbing higher, although there is great debate as to whether or not the crypto’s recent pullback will cut deeper or if BTC will find support around its current prices.
Is the Narrative Regarding BTC Being “Digital Gold” Unraveling?
The volatility discussed above is certainly emblematic of the fact that the crypto markets are still very small and immature, which also means that there is significant room for growth and positive change.
Despite this, analysts are now noting that the recent volatility has unraveled the “Gold 2.0” narrative that many investors have been discussing as of late, which may mean that global economic instability will not prove to be a positive thing for Bitcoin in the near-term.
Jim Iuorio, a prominent trader and the managing directing of TJM Institutional Services, spoke to CNBC about Bitcoin’s volatility, explaining that BTC’s recent volatility may lead traders to look towards assets like Silver and Gold as safe havens from economic stability instead.
“Bitcoin, all of a sudden, has shown some drastic volatility over the last two weeks, including a $3,000 drop in about a minute two weeks ago. So, to me, bitcoin’s out,” he said.
As Bitcoin’s price action continues to unfold and as the markets continue to find greater stability and maturity, it is highly probable that analysts will gain greater insight into how BTC will trade should the global economy continue to face instability.