Bitcoin Drops to $7100 even with Positive Fundamentals – Is $6500 Incoming?

Bitcoin Drops to $7100 even with Positive Fundamentals – Is $6500 Incoming?

Donald Trump, the President of the US, decides to postpone the Phase 1 trade deals with China along with threats of increasing tariffs.

Bitcoin [BTC] dropped to test lows at $7100 on Tuesday, despite positive cues from global macro.

Gold, on the other hand, records gains as expected from such an event.

The Bitcoin [BTC] investment rhetoric this year began with the ‘safe haven’ dialect. The trade war between the US and China heightened during Q2. Consequently, Bitcoin and gold, both regained over 150% and 18%, respectively. Gold/USD 1-Day Chart on Bitstamp (TradingView) The downside post of September is also correlated with gold. However, the current macro structure will threaten a massive decoupling of these factors. On Tuesday, Gold rose by 1.05% after Trump’s made the announcement.

If the stock market and global trade continue to see adversities and Bitcoin [BTC] remains bearish, the store of value argument will be questioned.

Moreover, the halving speculation is still ongoing with the event due in May. Bitcoin investor, Alistar Milne, noted , Please tell me again how ~$45million / week of unsatisfied demand won’t move the price when Bitcoin’s halving occurs … He is referring to the compensation in the selling pressure from miners, as half will reduce Bitcoin rewards in May 2020. Currently, about $13-15 million is needed to balance the number of daily rewards in Bitcoin [BTC] .

The market usually discounts the value of the gains in the future. However, this time around, it seems to be waiting for the event […]