After the historic collapse on Friday… Bitcoin falls again, and gold shines

The digital currency “Bitcoin” was once again unable to prove its position as a safe haven in times of turmoil, after a week of continuous losses that wiped out hundreds of billions of the value of crypto assets on the Friday of the historic collapse, while gold continues to achieve new record levels.

Bitcoin fell to $103,528 in parallel with global stocks and credit markets, before continuing to fluctuate around $115,000.

Bitcoin reached a record level of $126,251 on October 6.

A few days later, escalating trade tensions between the United States and China sparked a record wave of exits, coinciding with a sharp sell-off that swept most major cryptocurrencies.

So far, the market is facing difficulty in achieving a sustainable recovery, despite the expansion of major companies such as Kraken (Kraken) and “Circle” (Circle) and “Bitgo” (BitGo) and “Ripple” (Ripple) in the areas of regulated finance, by seeking trust service provider licenses and developing card-based payment systems and products.

Risks from the US-China trade dispute continue to cast a shadow over risk assets, extending far beyond the cryptocurrency market.

Gold shines and Bitcoin disappoints

While traditional havens such as gold and silver continue to record new highs, Bitcoin has disappointed investors.

Bitcoin fell by 6.3% during the week ending October 12, its largest loss since the beginning of March, without yet showing any signs of recovery. The same applies to most other cryptocurrencies.

“I see cryptocurrencies as the canary in the coal mine, reflecting the market jitters due to rising credit concerns,” said Matthew Hogan, chief investment officer at Bitwise.

The $107,000 level is seen as a major support level for Bitcoin in the next stage. “A decisive decline below this level may open the door to further losses,” Lucas said.