The price of Bitcoin has always been highly speculative and prone to impact from internal and external matters that have any slight bearing on the cryptocurrency ecosystem. News, be it positive or negative, has been known to sway the price of the coins wildly.
Those days of massive price swings on news events seem to be drawing to a close as the latest bout of bad news for Bitcoin seems to have done very little to deflate the price. In fact, Biton is back over $11,000 having waned somewhat in the past few weeks.
Events directly affecting Bitcoin — such as the high profile takedown of BitMEX and the cases opened against some of the key members by the US justice system had very little impact on the price.
Additionally, news that had a drastic impact on the general markets — that of US President Donald Trump contracting Covid-19 — sent the stocks down, but Bitcoin was unmoved. There are many discussions around Bitcoin’s correlation with the stocks, but it has been seen to dip on bad news for stocks.
Riding the waves
Both internally and externally, Bitcoin has faced some stern tests to its rising price in the past week. The news about BitMEX rocked the crypto space and opened many eyes about the level of regulator crack down even on established companies.
This type of news is exactly what would tank a rising Bitcoin price previously, as BitMEX is a derivatives exchange that holds some of the highest liquidity in the market. Yet the price did not suffer much at all, and in fact, has been rising since the news broke.
Additionally, the impact of Trump contracting Covid-19 on the stock market, and its relative non-impact in crypto is also astounding. When the markets crashed globally due to Covid-19, Bitcoin followed the downward trend of the stocks. However, this time, with Trump being struck down, the markets fell and Bitcoin rose.
This of course could also be linked back to Bitcoin being a hedge against such markets, but it has yet to prove itself as anti-correlated.
A new resilience
The manner in which Bitcoin has managed to ride the waves of these negative occurrences that could possibly derail its price is indeed pleasing as it shows a sign of resilience, and maturation. Bitcoin has indeed been maturing over these past years and more and more signs are evident.
There is even evidence of the volatility coming under control to a point where stocks in Tesla have shown more wild movements than Bitcoin over the last few months. Indeed, it appears that Bitcoin is starting to settle and find its role in a world looking to change after the global pandemic.