May was a winning month for Bitcoin, there is simply no doubts about that. During the month, the cryptocurrency rose its price in over $3,000 USD and decoupled from the traditional markets, which were not even close to matching all the success the largest cryptocurrency had this month.
At the moment, BTC can be traded at $8,450 USD and it is set to have its fourth month in a row rising in value, this time with gains of 60%, which is a considerable improvement to have right now. This is the longest winning streak that the token had ever since August 2017, so there are plenty of reasons to be excited for the future of Bitcoin right now.
It is also important to see how Bitcoin is heading up despite some Wall Street investments losing their edge in the market. The S&P 500 index, for instance, finished the month 6% down. Other assets which are sensitive to economic growth are also not having the best results right now. For instance, brent oil and copper are down 11% and 9%, respectively. Even the Chinese Yuan is down by 3%.
The bad month is happening because the U. S.-China Trade War is starting to ignite again and several investors are afraid that this might end up leading to a new economic recession, which would be bad for the global markets. Bitcoin, however, would not be affected by this and, in fact, its prices might even be positively correlated with the economy becoming worse.
This made “safe haven assets” such as gold and now Bitcoin goes up. The price of gold was up 1% and the U. S. 10-year treasury yield was down 13% (as the price is higher, the yield is lower). However, these gains obviously appear to be somewhat lackluster when you consider that Bitcoin rose 60% in a single month.
Why invest in gold when you can just use digital gold instead, which is much more valuable and goes up a lot faster? This year, the price of BTC is already 127% up.
While last year the prices of BTC mimicked the difficulties of the equity markets and went down together with it, this year it looks like BTC has decoupled and it is ready to get massive profits again. The year is just beginning, so it is obvious that there is still a lot of road for growth.
This was an important month. It helped to solidify Bitcoin’s leadership as the new digital gold and has made the bull run finally be accepted by almost anyone in the market. Will the next month be even better? We can only hope.
Bitcoin’s price is $8,572.52 BTC/USD exchange rate today. The real-time BTC market cap of $152.02 Billion currently ranks #1 with a chart dominance at 55.80%, daily trading volume of $7.24 Billion and live coin value change of BTC 3.47 in the last 24 hours.