Bitcoin’s price appreciation has been moving at an interesting pace, almost suggesting that Bitcoin is replacing Gold. This was implied by Bloomberg’s senior commodity strategist Mike McGlone who posted the Bitcoin futures flow chart on Twitter. The Bloomberg Intelligence chart depicts the “Rising futures open interest and investor inflows in Bitcoin.” The momentum driving this demand as shown in the chart was birthed in 2017. The interest rate in Bitcoin futures slowly trailed upwards and in 2019, just two years after, broke above $400 Million and continued to smash $1 billion, precisely $1.06 billion at the time of this writing. On the other hand, open interest in gold is declining slowly. This is supposedly giving the cryptocurrency an edge over gold.
Yet, the preceding data imply that Bitcoin is yet to mature into an alternative store of value. At Bitcoin’s current pace, its $350 billion market cap may not be able to go head to head with Gold’s $10 trillion market. Even as this is true, it doesn’t invalidate the fact that Bitcoin is still a highly demanded asset that will influence the future of money, whether as a global currency or as a better store of value.
In fact, it adds to Bitcoin’s credibility to see that in a very short period of time, the cryptocurrency has already carved a path in the industry. Investment interest is already skyrocketing and this could be a deciding factor in Bitcoin’s market growth.
Essentially, Bitcoin is one of the very few digital assets that carry value, give freedom to investors, and eliminate the troubles of the traditional market. Bitcoin remains a very important tool for investors. The market seems to be transitioning and even if Bitcoin’s reign may not carry on for too long, investors are reluctant to stick with the traditional currencies.
The market has been moving in sideways motion for the past day. Sellers and buyers have been met with price rejections at some of their highest points. The $19k high might be revisited within 24 hours, but with Bitcoin’s price swinging around $18.9k, it will do the market a lot of good if Bitcoin can only do as much as maintaining a price mark above $18,000.
Neither the bulls nor the bears have taken full control of the market, but the next few hours could see either one at the top. As for analysts who predicted that Bitcoin might slump before it recuperates for a stringer rally, they still maintain that $20,000 is very much in sight.