Blog - Bitcoin Breaks $12,000 Amid Global Recession Concerns

Bitcoin Breaks $12,000 Amid Global Recession Concerns

Written by Mark Hansburge

Posted on 10th Aug 2019

Piggy bank

Bitcoin has just broken the 12,000 USD barrier for the second time in three days. This all amidst concerns for a global recession. This takes bitcoins week-on-week gains to $2,000 USD. Following on from 2018's crypto-crash, Bitcoin has enjoyed six months of steady increases during 2019. However, has had wild fluctuations over the summer months. Which saw Bitcoins value from 9,000 to 13,000 USD. It seems that Bitcoin is now back on track as the price tops 12,000 USD for the second time this week.

A Safe Haven For Investors

While this price movement for Bitcoin could be followed by another dive, some market speculators only believe that bitcoins price can go up. One reason for this Bitcoins emerging reputation as a safe-haven amid fears of a global recession, which something is on the horizon. Political uncertainties across the globe have caused some of these thoughts. The ever-increasing possibility of a No-Deal Brexit and Donald Trump's escalating trade war with China has lead to these concerns. On the 6th of August 2019, China's yuan hit its lowest point in over a decade.

Alternative Factors

Other possible triggers for the bump in Bitcoins stock includes a halving in the block rewards for miners of Litecoin, the fourth-largest cryptocurrency by market value and an old fork of bitcoin. This having means that the number of tokens of litecoin miners receive has been cut from 25 to 12.5 this is known as a havening. These havening tend to be a positive event for cryptocurrencies price as they tighten the supply of the coin. Bitcoin will undergo a havening in May 2020 when rewards for miners will fall from 12.5 to 6.25.