Bitcoin closes its best January since 2013 and is already considered “an active refuge”

by Patrick Gon

A record January. This has closed the bitcoin the first month of 2020. The popular cryptocurrency has accumulated a rally of 29% revaluating at 40,000 million dollars. And all, in an environment of uncertainties led by the coronavirus that grips the investor. Experts see this correlation and already point to this asset as a refuge despite historically being associated with volatility.

“The upward trend of bitcoin correlates with the outbreak of the coronavirus,” he says. “The more cases appear, the more countries in the world are affected and the greater the impact on traditional financial markets … the higher the price of this cryptocurrency,” he adds.

The Lunar New Year is over and Asian exchanges have responded with crashes of up to 8%. The unexpected winner has also been bitcoin: “We have seen the entry of a lot of money after the holiday, especially in Malaysia,” says Vijay Ayvar , head of business development in Luno , in words to the US newspaper.

“The recent bitcoin rally amid fears of a pandemic is another sign that this asset is much less risky and offers great returns,” says Jehan Chu of Kenetic Capital . Chu predicts that this cryptocurrency “is positioned to break and beat the $ 15,000 by the middle of this year.”

“WHEN THE BAGS DO WORSE …”

From a technical aspect, the analyst of Bolsamanía , JM Rodríguez , has recently observed “a change in trend” in bitcoin before “a clear increase in trading volume” which “is always good when it comes to breaking up.” Currently, “the most important resistance we have in the highs of 2019 at $ 14,000.”

Rodriguez points out in another of his analyzes that bitcoin is beginning to be seen as an active refuge like gold: “We already saw it during the clashes between the United States and Iran at the beginning of the year and now.” In short, “the worse the bags do, the better the cryptocurrency does.”

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