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Here Is How Bitcoin (BTC) Is More Stable Than Fiat and Could Eventually Become a Global Currency

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Bitcoin (BTC) has constantly been on the news due to its characteristic volatility during a 24 hour period. Those who have learned how to trade with the ups and downs have loved the crypto industry as can be seen in the numerous tweets, facebook posts and telegram chats about profits on a daily basis. But this type of volatility is frowned upon by veteran Wall Street investors and trusted personalities such as George Soros who had this to say about the King of Crypto back in January:

“Cryptocurrency is a misnomer and is a typical bubble, which is always based on some kind of misunderstanding…Bitcoin is not a currency because a currency is supposed to be a stable store of value and the currency that can fluctuate 25% in a day can’t be used for instance to pay wages because wages drop by 25% in a day. It’s a speculation. Based on a misunderstanding.”

Looking at the recent volatility of BTC since the SEC decided to postpone its decision, it has only declined the most by 12% in a day. BTC dropped from $7,100 on the 7th of August to $6,242 on the same day. This is a drop in value of 12% as earlier mentioned.

However, this drop in value is not as significant as the one witnessed by the Turkish Lira between the 9th and 10th of August this year. The fiat currency dropped by a comparative value of 0.18452 to the USD, to that of 0.15142 in a 24 hour period. This is a massive drop in value of 18%. This event even caught the attention of Shape Shift CEO, Erik Voorhees who tweeted the event as can be seen below.

To provide a visual representation of the event, we have included a screenshot of the TRY/USD chart referenced by Mr. Voorhees below.

TRY/USD Chart from the 9th to the 10th of August. Source, xe.com

Bitcoin (BTC) as A Global Currency

To hedge against the instability of fiat currency, Forex traders have been known to be using Bitcoin (BTC) to ‘stash their funds’ during periods of volatility. One such example is the recent news that the bank of Japan would stop stimulating the economy. This announcement happened around the 30th of July which coincidentally was when BTC seemed to be steady around the $8,100 levels. Perhaps this level was being maintained by the forex traders from Japan who soon went back to fiat as soon as the Bank of Japan eased up on its initial idea of cutting off government stimulus into the economy.

What then happened, is that BTC started fumbling once again after the Bank of Japan went back to business as usual. This indicates that the savvy traders cashed their BTC for fiat after the risk had been averted.

As we progress with time in the crypto-markets, we might see a situation where Bitcoin goes toe-to-toe with the major fiat currencies in traditional stock markets. This will now add an additional crown on to BTC as being also a global currency better than and greater than the USD.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Bitcoin Price Dumps Below $41,000 Amid Uncertainty

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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.

Fundamentals

Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.

Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.

Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.

Last week on Thursday, cryptocurrency experts took notice of…

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Bitcoin

Bitcoin Price is in Consolidation Mode Despite Market Optimism Post-Fed Decision

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Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.

Economic Outlook

Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.

The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.

Additionally, the central bank indicated that three rate…

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Bitcoin Price Blasts $44K in Spectacular Surge as Spot Bitcoin ETF Approval Looms Large

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Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.

Fundamentals

Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.

According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.

Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…

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