The Bitcoin [BTC] ecosystem has seen a resurgence of sorts recently, with multiple price fluctuations in the cryptocurrency field being spearheaded by the world’s largest cryptocurrency. Several movements and campaigns were launched to spread the message that Bitcoin is a thing of the future, along with its benefits over the standard ‘store of value,’ Gold. The Drop Gold initiative launched by the Barry Silbert-led Grayscale Ventures, was one such popular example.
In a recent Twitter thread however, the campaign was called out by Dan Popescu, a prominent gold and forex analyst, who claimed that the precious metal and its value were not dying, but rather was on an uptrend. His tweet read,
“Contrary to fake news spread by the bitcoin cartel with their “dump gold” campaign, facts are that #gold is NOT being demonetized. On the contrary, since 2008 crisis gold has been accumulated by central banks, sovereign funds in large quantity at an accelerated rate since 2018.”
The 2008 recession is claimed to be one of the trigger points for the creation of Bitcoin and is used as a reminder of the fragile nature of fiat economy. One of Drop Gold’s statements has been about how Bitcoin is a faster and cheaper method for store of value, rather than the cumbersome gold. Silbert had previously stated that all Bitcoin needs to trump gold is time, as Bitcoin has been around for just a decade while gold has existed for much longer. The organization’s statement had said,
“With an estimated $68 trillion in generational wealth changing hands over the next 25 years (including $48 trillion from Boomers), we may see more investment dollars make their way into uncorrelated assets like Bitcoin.”
Popescu added that although gold is not outrightly used for transactions and payment settlements, it has been fundamental to the world economy. The analyst tweeted,
“During, since 2008 financial crisis BIS transactions show that gold is being used in international settlements after so many decades of being sidelined in the monetary system. Gold remained even after 1971 the backbone of the international monetary system even if in the shadow.”
Popescu’s comments did not go unnoticed by Barry Silbert, who was amused about the notion of the existence of a ‘Bitcoin cartel.’
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Bitcoin falls by over 5% in an hour as major correction ensues; altcoins follow suit
Bitcoin [BTC], the largest cryptocurrency in the world, revisited its glorious highs over the past few weeks. However, it would seem that Bitcoin is falling back to earth since the coin was falling by 5.88% in an hour, at press time.
The coin while falling by 5.88% over the hour, was being traded at $12,251 on Bitstamp exchange. The market cap of the coin was reported to be $224 billion and the 24-hour trading volume was $41.813 billion. Over the past 24 hours, BTC fell by 9.55%, while noting a growth of 35.78% over the week.
The Bitcoin community was rooting for the coin to cross $14k and after the strong bullish momentum showcased by the coin, the target was not a far fetched one. However, the crash suddenly pulled its price below $13k. Twitter user, @aquinastheory, explained the trend,
“First MA/EMA cross to the downside since June 2nd and the time before May 4th. Either new distribution/accumulation is gonna occur here within the next few days, weeks or we’re going down for sure. #bitcoin $btc #crypto #forexsignals”
The coin was highly traded on Binance with BTC/USDT pair, reporting a trading volume of $1.881 billion. BW.com followed Binance, noting a volume of $1.686 billion with BTC/USDT pair. The third place was taken by Huobi Global with BTC/USDT pair, with the volume reported to be $1.578 billion.
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