Bitcoin’s price movement has been considered as one of the main indicators for analyzing the behavior of the entire cryptocurrency market. Some analysis also showed that Bitcoin was outperforming its mainstream peers such as gold and other precious metals with silver being the only commodity standing out during the previous week.
In the latest CNBC market analysis, it was pointed out that silver had spiked to its biggest high since 2016, beating expectations set by gold, the current standard or store of value. The analysts on the panel claimed that silver’s high could fade because its price was showing the same patterns it followed back in January and February.
According to the analysts:
“Silver usually has a trend of staying behind gold and then catching up all of a sudden. This pattern is recursive and follows earlier standards.”
The analysts further speculated that Silver’s current hike towards $16.12 came in the wake of volatility in other markets, mainly that of Bitcoin. Over the past week, Bitcoin had gone through a phase shift where the price went above the $10,600 mark and then fell below the $10,000 mark to settle near the $9700 zone.
At press time, Bitcoin was trading for $10,577 with a total market cap of $188.59 billion. Although the past seven days resulted in a 2.7 percent drawdown in prices, the 24-hour market volume was holding at a healthy $19.06 billion.
Analysts predicted that silver’s current rally was a way for it to attain the ‘safe haven’ status because Bitcoin just lost it. Unlike Bitcoin, silver’s price also has a chance to fall if the ecosystem entered a phase of lower growth demand.
A majority of the members in the cryptocurrency community speculate that gold will move aside and assets like Bitcoin and silver will act as placeholders.
This was said in conjunction with the negative markets in Japan and the ongoing loss trends in the European markets. Equity Armor Investments’ Brian Stutland, a panelist on CNBC and a Bitcoin supporter elucidated on silver’s dominance by saying:
“I’d short this. I’d even throw in a long gold and play the long-short on it. I still like gold better … longer term, or even bitcoin after this big pullback here.”