Bitcoin prices surged 5% on Wednesday, outpacing stocks and gold amid calls for more government stimulus, as the economic toll of the coronavirus mounts.

The oldest and largest cryptocurrency rose to $11,755. The price is now approaching $12,000 for the second time in a week, a level that bitcoin hasnt sustainably traded above for more than a year.

Youre readingFirst Mover, CoinDesks daily markets newsletter. Assembled by the CoinDesk Markets Team, First Mover starts your day with the most up-to-date sentiment around crypto markets, which of course never close, putting in context every wild swing in bitcoin and more. We follow the money so you dont have to. You cansubscribe here.

Related: Bitcoin Entering 'New Adoption Cycle,' Messari Says

Bloomberg News went so far as to declare in an article Wednesday that bitcoin mania appears to be almost back in full bloom.

Bitcoin is seen by many digital-asset investors as a hedge against inflation, and the bets are growing that governments and central banks will have to pump trillions of dollars more into the financial system to stimulate the economy out of the worst recession since the 1930s.

Gold, historically seen as a reliable inflation hedge, surged this week to a new record above $2,000.

Yet even golds 35% gain this year is no match for bitcoins 63% price increase. The Standard & Poors 500 Index is now up 3% on the year, with some traditional investors arguing that stocks have become detached from reality, merely propped up by the roughly $3 trillion of freshly created money that the Federal Reserve has pumped into the global financial system this year.

Related: Blockchain Bites: Square's Revenue Surge, Eth 2's Final Testnet, c-Lightning's Latest Update

Bitcoin and the crypto markets are once again able to claim independence from the traditional markets, Mati Greenspan, co-founder of the foreign-exchange and cryptocurrency analysis firm Quantum Economics, wrote Wednesday in a newsletter.

The U.S. governments budget deficit this fiscal year is projected to soar to $3.7 trillion, far surpassing the previous record of $1.4 trillion in 2009, according to the Associated Press.

An extra $600-per-week federal benefit for laid-off workers lapsed last week, threatening the economic recovery, and U.S. lawmakers arewrangling over the details of a newspending measure that could range from $1 trillion to more than $3 trillion.

Bitcoins long-term value proposition as a hedge against fiat currency debasement only grows stronger,Anil Lulla, of cryptocurrency research firm Delphi Digital, noted Wednesday in an op-ed for CoinDesk.

The International Monetary Fund warned this week in a blog post that another bout of global financial stress could trigger more capital flow reversals, currency pressures and further raise the risk of an external crisis for economies with preexisting vulnerabilities, such as large current account deficits.

All that just plays to bitcoins strengths, as more investors start to extrapolate the likely stimulus needed to recover from a protracted economic downturn. According Bloomberg News, analysts for the U.S. bank JPMorgan Chase wrote Tuesday that while older investors are buying gold, younger investors are buying bitcoin.

The analysis firm Coin Metrics noted thatbitcoin over the past week had averaged over 1 million daily active addresses for the first time since January 2018. That was in the wake of the cryptocurrencyhitting an all-time high around $20,000 in 2017.

And Norwegian cryptocurrency-analysis firm Arcane Research noted in a report this week that bitcoin daily trading volumes have been growing strongly, with several days topping $2 billion. The number of openbitcoin futures contracts on the CME exchange has jumped to a new record around $850 million.

The strong momentum in the market continues, Arcane wrote. The sharp rise in open interest at CME is a clear indication of increased institutional demand for bitcoin.

Chris Thomas, head of digital assets for broker Swissquote, told CoinDesks Daniel Cawreyon Wednesdaythat bitcoin could break past $12,000 by Friday.

Story continues

The signs certainly appear to be pointing in that direction.

BTC: Price: $11,700 (BPI) | 24-Hr High: $11,807 | 24-Hr Low: $11,380

Trend:Bitcoin is looking north after twin bullish cues were activated by a 5% rally Wednesday.

Firstly, with the UTC close at $11,755, bitcoin marked an upside break of a narrowing price range witnessed Monday and Tuesday.

In addition, Wednesdays UTC close established a strong foothold above $11,400. The bulls had repeatedly failed to keep gains above that level on Monday and Tuesday.

The combination of range breakout and convincing move above a key hurdle has opened the doors for a re-test of recent highs above $12,100.

Still, the case for a rally to recent highs would only weaken if prices fall back below the former hurdle-turned-support of $11,400. At press time, bitcoin is changing hands near $11,700.

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First Mover: Bitcoin Rises More in One Day Than Stocks Have Gained All Year - Yahoo Finance

ZUG, Switzerland, Aug. 6, 2020 /PRNewswire/ -- Bitcoin Association, the global industry organization that works to advance business with Bitcoin SV, today announces the first Chinese-language edition of its popular Bitcoin SV DevCon series will be held August 29-30 in partnership with CSDN and nChain.

The two-day virtual event will be hosted entirely in Chinese and will feature leading figures from China's technology and blockchain communities teaching sessions designed to educate and upskill developers interested in working with the Bitcoin SV blockchain. The weekend-long programme will provide a foundational understanding of the Bitcoin network, in addition to introducing advanced blockchain functionalities including smart contracts, cloud computing implementations and the miner fee economy.

A full schedule for Bitcoin SV DevCon: China is available at https://bsvdevcon.net/bitcoin-sv-devcon-august-2020

The inaugural Bitcoin SV DevCon was held last month over the weekend of July 18-19, with more than 3,000 attendees participating live. Following a strong response to Bitcoin SV developer initiatives already rolled out this year in partnership with CSDN, Bitcoin SV DevCon: China will meet a growing demand for blockchain education programmes emerging and is the latest sign of Bitcoin Association's strong ongoing commitment to its Chinese-speaking community.

CSDN is the largest IT and software developer community in China, with 31 million users and a top 30 Alexa Global ranking.CSDN's participation will help distribute the Bitcoin SV DevCon: China educational content to a large audience.

Attendance is free and registration is open now at https://bss.csdn.net/m/topic/bsvdevcon

Speaking on today's announcement, Bitcoin Association Founding President Jimmy Nguyen, commented:

"After the success of Bitcoin SV DevCon 2020 last month, Bitcoin Association are delighted to be able to extend our partnership with CSDN to produce our first-ever Chinese language DevCon for the growing Bitcoin SV community in China. There are great opportunities emerging for individuals with the knowledge and skillset to build with Bitcoin and I'm excited to see the development and innovation sure to emerge as a result of the DevCon."

Also speaking on today's announcement, CSDN Founder and Chairman Jiang Tao spoke of the importance of programmes like Bitcoin SV DevCon for developers:

"The 5G age will enhance the advantages of blockchain technology. Over the next decade, the Bitcoin blockchain platform will enable new industrial fields to emerge, meaning that now is a great time for developers to learn more about blockchain technologies."

Lise Li, China Manager for Bitcoin Association, commented on the organization's commitment to bringing further opportunities for China's Bitcoin SV community:

"Bitcoin SV developer initiatives have been a key goal for Bitcoin Association this year, which we've taken to implementing in China through a host of different measures, including the creation of the Bitcoin SV Developer Zone with CSDN, a series of Chinese-language webinars, and now, Bitcoin SV DevCon. Many innovative businesses and developers in China are working on blockchain solutions as present, so Bitcoin SV DevCon will be a good opportunity to introduce them to the power of the Bitcoin SV blockchain and show them what's possible when developing with it."

About Bitcoin Association

Bitcoin Associationis theSwitzerland-basedglobal industry organization that works to advance business on the Bitcoin SV blockchain. It brings together essential components of the Bitcoin SV ecosystem enterprises, start-up ventures, developers, merchants, exchanges, service providers, blockchain transaction processors (miners), and others working alongside them, as well as in a representative capacity, to drive further use of the Bitcoin SV blockchain and uptake of the BSV digital currency.

The Association works to build a regulation-friendly ecosystem that fosters lawful conduct while facilitating innovation using all aspects of Bitcoin technology. More than a digital currency and blockchain, Bitcoin is also a network protocol; just like Internet protocol, it is the foundational rule set for an entire data network. The Association supports use of the original Bitcoin protocol to operate the world's single blockchain on Bitcoin SV.

SOURCE Bitcoin Association

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Bitcoin Association to partner with CSDN on Bitcoin SV DevCon: China - PRNewswire

The coronavirus pandemic has caused an unprecedented global economic crisis, not unlike the 2008 global financial crisis that led to bitcoin's creation.

A number of investors have turned to bitcoin in recent months to combat the inflation they see coming as a result of the unprecedented coronavirus stimulus measures the U.S. Federal Reserve and other central banks have pumped into the system.

Now, with the bitcoin price following other so-called safe-haven assets like gold higher over the last week, U.S. Congressman Tom Emmer has said he expects bitcoin to "get stronger" as the world emerges from the coronavirus crisis.

Rep. Tom Emmer, R-Minn., is a long-time advocate of bitcoin, cryptocurrencies and blockchain and ... [+] thinks bitcoin will be strengthened once the world emerges from the economic chaos caused by the coronavirus pandemic.

"As we come out of the crisis, bitcoin isn't going away," U.S. representative Tom Emmer (R-MN) told bitcoin and crypto investor Anthony Pompliano, speaking during an interview on Pompliano's popular podcast, adding bitcoin and cryptocurrencies are going to "continue to become more and more important."

"[Bitcoin is] going to get stronger. You just watch, it has value, when something has value, people are going to take risks and its going to advance."

Emmer pointed to recent developments, including U.S. regulators last week authorizing banks to provide custody for cryptocurrencies, as the kind of progress that will bring bitcoin and crypto into the mainstream.

Emmer also criticized modern centralized monetary systems, going back to the U.S. departure from the gold standard in the 1970s.

"There are things happening that are going to disrupt the centralized nature of our society. We're about to blow that whole thing up, because of the pandemic, I believe," Emmer said.

Bitcoin is powered by decentralized blockchain technology that replaces centralized authority with a distributed network. Using blockchain, some think governments will be able to move away from top-down, centralized systems.

"I think were just moving into that next phase, which is why crypto, the area, excites me."

After crashing in March, the bitcoin price has strongly rebounded, climbing back above the ... [+] psychological $10,000 per bitcoin level last month.

Emmer has advocated for decentralized and blockchain-powered innovation in the past, calling for the U.S. government to take advantage of cryptocurrency technology.

Just this week, he co-signed a letter to the IRS, requesting the U.S. tax agency create a policy that supports the protocols used to create some cryptocurrencies, known as proof-of-stake.

Earlier this year, he raised concerns that regulation could ultimately smother innovation and called on the U.S. government to provide more regulatory clarity for the crypto industry.

"We're not going backward when it comes to the internet superhighway," Emmer told Pompliano. "We've got to go forward."

Emmer also used the recent Twitter hack, where high-profile Twitter accounts were hijacked and used to promote a bitcoin scam, to lend his support to bitcoin.

"Bitcoin isn't the problem," he tweeted in the wake of the attack. "Centralized control is."

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U.S. Congressman: Coronavirus Crisis Will Make Bitcoin More Important And Stronger - Forbes

Weekly peer-to-peer bitcoin trading volumes topped $95 million globally with several countries recording new all-time highs for the year.

The record trading volumes coincided with the most bullish week for cryptocurrencies with bitcoin (BTC) briefly trading above $12,000.

As data from Usefultulips shows, peer to peer bitcoin trading volumes for the week topped an equivalent of $95 million. The figure surpasses $92.4 million, the highest weekly volume value in 2019.

The data combines trading volumes at two peer-to-peer trading platforms, Localbitcoins and Paxful. According to the same data, the month of December 2017 had the highest ever recorded weekly traded volume. Trades totaling $131 million were recorded.

Meanwhile, a break down of the $95 million by region shows that North America is leading with $28.7 million. The United States takes the lions share of that figure.

The Sub-Saharan Africa region comes second with $18.3 million worth of bitcoin have being traded between peers in the period under review.

A further breakdown of the $18.3 million reveals that Nigeria leads the Sub-Saharan Africa region. According to the data, Nigerian peer to peer bitcoin trading volumes topped an equivalent of $9.8 million. The figure is slightly below the $10.3 million recorded in the week earlier.

Kenya is a distant second with $3.2 million worth of trades while South African peer-to-peer trading volumes topped $2.8 million.

The Sub-Saharan Africa data also shows that the regions $18.3 million is the highest ever recorded. A noticeable spike in trading volumes which began in April suggests that Covid-19 and lockdown measures might have made peer to peer bitcoin trading more appealing.

Meanwhile, Latin America and the Asia Pacific are two regions with the next highest volumes. Both regions had about $13 million worth of bitcoins being traded.

As expected, Venezuela, which is grappling with record inflation levels, leads in Latin America with nearly $5 million worth of bitcoin traded.

Colombia is second with $3.4 million while crisis-hit Argentina is a distant third with just under $1 million worth of trades.

In the Asia Pacific, China and India are neck and neck with $4.5 million and $4.4 million respectively. For India, the figure represents a new all-time high.

What do you think about the growing peer-to-peer trading volumes? Tell us your thoughts in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Read more:
Peer-to-Peer Bitcoin Trading Tops $95 Million as Sub-Saharan Africa Records Set All Time High | Markets and Prices - Bitcoin News

In its August crypto outlook, Bloomberg remained unimpressed with Ethereum, calling its rally speculative. The publication contends, however, that Bitcoins (BTC) rise is based on solid ground:

Ethereum has extended last year's highs and leaped to one of the top-performing major crypto assets in 2020, but we view its rally as more speculative vs. the favorable demand vs. supply conditions supporting Bitcoin.

The report points out that Ethereum faces plenty of competition from similar crypto platforms and about 6,000 tradable coins. On the other hand, Bloomberg has remained consistently bullish about Bitcoin, noting its gold-like qualities and increased institutional demand.

The success of the DeFi space has led to the appreciation of Ether, with some comparing it to the ICO boom. As more smart contract platforms mature, competition will only get tougher. When it comes to the world of professional investors, Ether does not have a clear selling point like Bitcoins limited supply.

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Bloomberg: Ethereums Rise is Speculative While Bitcoins Price Is Based on Fundamentals - Cointelegraph

I have never looked at Bitcoin. I have never traded it, or even considered doing so. Even when Bitcoin was so hot a few years back, I found it fascinating, but that was it. In the last week or so I have seen several people talking about it, though, folks who are not exactly crypto-centric.

So, when a reader, Jerry, told me he was taking a hard look at Bitcoin this week,I felt it was time to at least take a gander at the chart. Being a stock person, I opted to look at the equity version of it, Grayscale Bitcoin Trust (GBTC) . Much to my surprise, one of my favorite patterns was right there on the chart: A head-and-shoulders bottom. Well, a potential head-and-shoulders bottom. A breakout over $14 would be needed to complete the pattern. And while there is still resistance all the way up to $17, getting through that resistance is a step in the right direction.

I want to stress that I know next to nothing about Bitcoin or cryptocurrencies, but I thought the chart was interesting and decided to share it with you.

Now back to the stock market. The day started out exactly as I prefer, where the breadth is good and the indexes sag or lag. It stayed that way most of the day, but that last few minutes of trading saw the S&P play catch up and breadth did not improve much more. But the breadth was the exact same as it was on Monday, yet the S&P 500 was up half of what it was, so Tuesday was a better day in terms of breadth.

It wasn't good enough to move the needle on any of the indicators. That means we need to see another day of good breadth to nudge the McClellan Summation Index up. It means the number of stocks making new highs has still not expanded. It means the number of stocks making new lows is not expanding, but rather holding steady. You can see that on the 10-day moving average of stocks making new lows. If you think the market should go up, then you want new highs expanding and new lows contracting. That's not where we are now.

What surprises me is that the Volatility Index, while down, hasn't been down much this week. The Daily Sentiment Index (DSI) for the VIX has now slipped to 12. Remember that single digit readings tend to lead to rallies in the underlying instrument. Last week's single-digit reading in the dollar led to a snap back rally in the buck. So a single-digit reading in the VIX should lead to a move up in the VIX and presumably down in the indexes.

Finally on gold and silver. Gold has clearly moved higher than my target in the mid-$170s, but silver is finally into my target zone of $23-$25. Both have DSI readings at 93 now, so once again, it's necessary to let it rest or correct.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

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Psst: Can You Hear that Bitcoin Chatter? Then I've Got a Chart for You - RealMoney

Cramer gives you his buy list as long as Covid continues to rage. Helene Meisler goes to one chart shes never gone to before; andTim Collins warns about "dumpster diving" in this market. It's all on Real Money.

Plus,Rev Shark antes up on investing and gambling; and Doug Kass has a lot to say about Robinhood and its merry band of traders.

Here are five must reads from the columnists of Real Money and Real Money Pro, our premium sites for Wall Street professionals and active investors:

Instead of scratching your head and saying this stock market defies logic, look to the Jim Cramers Covid-19 Index.

Here are the Top 15 performing stocks in the index from Cramer and Real Money.

Helene Meisler always found bitcoin fascinating, but that was it. She'd never traded it.

But after a reader asked the "Divine Ms. M" about the cryptocurrency, she decided to take a look.

Heres what she found on bitcoins (GBTC) charts and indeed it's fascinating.

The market isnt supposed to work like this. Some companies, which probably shouldn't be public, are seeing their share prices double, triple, or reach valuations that are mind-boggling.

Tim Collins,Real Money columnist,has seen this before and it doesnt end well.

Market participants like to believe they aren't gamblers, but Jim Rev Shark DePorre says there's no denying that luck plays a major role in the investment process.

Read Rev Shark'sinvesting wisdom hereon Real Money.

With so much systemic buying and little discretionary buying, speculation and large price moves have become more commonplace, explains Real Money Pros Doug Kass in his Daily Diary.

Read how Robinhood is at the core of speculation and why its impact is considerable...and likely short-lived.

Real Money and Real Money Pro are TheStreets premium sites for active traders. Click here to get great columns like these from Jim Cramer, Jim Rev Shark DePorre, Doug Kass and other writers each trading day.

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5 Best Stories on Real Money: Cramers Covid Top 15, Bitcoin - TheStreet

With a touch more than three months left until the next Bitcoin Cash upgrade, crypto proponents have been witnessing a new quarrel rise after last years contentious Infrastructure Funding Proposal (IFP). This time around, the tensions derive from the Difficulty Algorithm Adjustment (DAA) discussion which is a conversation about replacing the networks current DAA.

Every six months the BCH community plans for an upgrade and this coming November, a number of users are concerned about another chain split. There is a lot of infighting within the community at present and among BCH developers as well. The story allegedly derives from the DAA discussion, but there has been tension ever since the last quarrel over the IFP.

A Difficulty Algorithm Adjustment (DAA) is basically an algorithm that adjusts the mining difficulty parameter. Bitcoin (BTC) adjusts the mining difficulty parameter every 2016 blocks, but on August 1, 2017, Bitcoin Cash (BCH) added an Emergency Difficulty Adjustment (EDA) algorithm that ran alongside the DAA. In November 2017, the DAA was changed on the BCH chain to adjust the mining difficulty parameter after every block. It also leverages a moving window of the last 144 blocks in order to calculate difficulty.

During the last year and a half, people have been complaining about the DAA as people believe it can be gamed. In the last year, the DAA subject has come up often and just recently the conversation has become more contentious. Recently, software developer Jonathan Toomim introduced a DAA concept called Aserti3-2d and the specification is available on Gitlab. The BCHN full node team has the code hosted on the Bitcoin Cash upgrade specifications page.

On July 23, 2020, Bitcoin ABC developer Amaury Schet announced the DAA called Grasberg via the Bitcoin ABC blog website. Following the release, Toomim published an article on the read.cash blog that argues against Grasberg. The engineer also described how members of the development teams have been squabbling in various online discussions. Toomim asserts that Grasberg is a big step on the path to corruption and it was not properly simulated.

On August 3, Bitcoin Cash developers met for a DAA meeting and BCHD developer, Chris Pacia, tweeted that the meeting did not go so well. Bitcoin Cash developer meeting blew up with multiple people walking out, Pacia tweeted after the meeting. Following Pacias statement, Ethereums Vitalik Buterin discussed the subject at length with BCH supporters from both sides of the argument.

I dont understand BCH people care so much about difficulty adjustment minutiae. I would say just use ethereums but honestly your algo is fine as is, Buterin tweeted. I will be honest; being optimistic that BCH development would improve once they got Craig out definitely is looking like one of my worst predictions, the Ethereum developer added.

Discussions about the quarrels between developers who work on the Bitcoin ABC implementation and the BCHN full node project are littered all over the Reddit forum r/btc. Additionally, there are lots of discussions on the read.cash blog and BCH fans are discussing the issue on Twitter as well. Most of the arguments pit the BCHN developers against the ABC developers, alongside the pros and cons of both Jonathan Toomims Asert DAA and the Grasberg DAA.

On August 5, 2020, a consortium of node implementations, infrastructure providers, services, engineers, and stakeholders published a post on the read.cash blog which explained that a number of actors will deploy the aserti3-2d difficulty adjustment algorithm (Asert DAA). We will deploy the aserti3-2d difficulty adjustment algorithm (Asert DAA) on Bitcoin Cash (BCH) on November 15th, 2020, as designed by Mark Lundeberg and implemented by Jonathan Toomim alongside other accredited contributors of the ecosystem, the consortium wrote. The announcement added:

The Aserti3-2d DAA is simple to implement, well-tested, and extensively simulated. It incentivizes consistent mining, achieves stability for transaction confirmations with low-variance 10-minute block targets, and is resistant to future drift.

The consortium announcement was digitally signed by Andrea Suisani (Bitcoin Unlimited), Andrew Stone (BU), Axel Gembe (Electron Cash), BCHD, Bitcoin Cash Node (BCHN), Calin A. Culianu (Electron Cash), Cashaddress.org, Cashfusion, Cashshuffle, Corentin Mercier (bitcash), Dagur Valberg Johannsson (BCHN, BU), Electron Cash, Fernando Pelliccioni (Knuth node), Freetrader (BCHN), Imaginary_username, James Cramer (SLP), John Nieri (General Protocols), Jonathan Silverblood (CashAccounts), Jonathan Toomim, Josh Green (Bitcoin Verde), Mark B. Lundeberg, Pokkst (bitcoincashj), Rosco Kalis (Cashscript), Tom Zander (Flowee), and Oscar Salas of Instabitcoin.net.

Many BCH supporters have said they dont want to see a split, while others believe that a split is inevitable. Bitcoin.coms CEO Dennis Jarvis discussed the situation on Twitter and said that the situation was sad to hear.

I hope everyone can come back together to work on the future roadmap. There are no good outcomes from forking/splitting for anyone who believes in the long-term value and usefulness of Bitcoin Cash, Jarvis tweeted. Bitcoin.coms CTO Emil Oldenburg also gave his opinion on Twitter.

A chain split would be terrible for BCH, Oldenburg said. We want BCH to win by being the easiest, most used, and most convenient payment option. Not win the crypto Darwin awards.

Its uncertain what will happen come November when the upgrade is planned if the signatories mentioned above choose to go with the aserti3-2d DAA and if ABC chooses to roll with Grasberg. Moreover, in ten days it is expected that a code freeze will take place on August 15, as it usually happens before the official upgrade.

Additionally, Viabtcs founder Yang Haipos Weibo account allegedly said that Coinex and Viabtc will initiate a fork as well by leveraging the ticker BCC. On August 5, 2020, Bitcoin ABC developer Amaury Schet tweeted about Yang Haipos statements.

Viabtcs [Yang Haipo] announced a fork of Bitcoin Cash under the ticker BCC, Schet tweeted on Wednesday. This is unfortunate, but also an amazing opportunity for those who have been unhappy with how things are going. Some will want to start a war. Those who want freedom must not let them.

What do you think about the arguments that are happening between Bitcoin Cash developers and community members? Let us know what you think in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Continued here:
Bitcoin Cash Difficulty Algorithm Debate Heats Up With Fears of Another Chain Split - Bitcoin News

Bitcoin prices climbed in July, reaching their highest in close to one year. When will the world's ... [+] most prominent digital currency reach a fresh, record high? (Photo by Chesnot/Getty Images)

Bitcoin prices enjoyed some notable gains last month, climbing nearly 27% in roughly two weeks and hitting their highest since August 2019.

The worlds most prominent digital currency climbed to $11,467.95 on July 31, according to CoinDesk price data.

At this point, it was trading at its loftiest value since August 12, 2019, additional CoinDesk figures reveal.

The cryptocurrency experienced a relative malaise for the first two weeks of July, moving within a reasonably tight range between $8,900 and $9,600, before climbing 26.7% between July 16 and July 31.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

After experiencing this run up, the digital asset fell back slightly, finishing the month up 24.4%.

Because of these gains, bitcoin experienced its most impressive July in eight years, according to CoinDesk.

Several Bullish Factors Drive Gains

When explaining the upside that bitcoin experienced in July, analysts pointed to several variables.

Tim Enneking,managing director ofDigital Capital Management, previously noted that the correlation between bitcoin and the U.S. equities was absurdly high for several months, and it was impossible for the digital currency to surpass the $10,000 level without that price correlation declining significantly.

However, once the price relationship between bitcoin and U.S. equities broke down, it triggered a rotation from alts into BTC, he noted.

Add to that the dollar at record lows and gold at record highs, and BTC has a *lot* of healthy tailwinds right now, stated Enneking.

Ethereums Contribution

Joe DiPasquale, CEO of cryptocurrency hedge fund managerBitBull Capital, also weighed in, emphasizing that while the aforementioned variables helped drive bitcoins price movements during July, we can't ignore the role played by Ethereum in resurrecting market enthusiasm.

The DeFi space kicked off this change in sentiment with projects like Compound and Balancer doing well, both in terms of adoption and the market, he noted.

Following increasing demand, ETH started looking alive and posted double digit gains, outperforming Bitcoin and other alts roughly two weeks ago, said DiPasquale.

These developments also resulted in positive sentiment returning to the market and helping Bitcoin rally past $10k, he stated.

Central Bank Influence

While Jack Tao, CEO of cryptocurrency derivatives trading platform Phemex, concurred with Ennekings assessment, he also stressed the impact that central bank policy is having on the digital currency markets.

Theres always a pool of investment money that moves around, navigating through different assets and markets seeking the best opportunities to make profits.

Any time one area doesnt do well or is projected to decline, the money simply shifts into a more promising sector, he noted.

With the high levels of quantitative easing in the U.S., concerns about inflation compel investors to find alternatives such as gold or opportunities within the crypto field, said Tao.

He added that a new technology, project, or announcement creates excitement and drives investors into crypto, exactly like Ethereum is doing now.

However, ultimately much of this money almost always eventually ends up finding its way back into BTC.

Bitcoin A Macro Asset, Says Analyst

Jeff Dorman, chief investment officer of asset managerArca, offered a different perspective when explaining the digital currencys gains in July.

I don't think correlation or resistance had anything to do with Bitcoin's move higher, he stated.

Bitcoin is now much less of a digital asset, and more of a macro asset, now that institutions are pouring in (as evidenced by large volume growth at CME, Bakkt and Fidelity), said Dorman.

And as a macro asset, the breakout was inevitable, as the inflation protection/store of value thesis was working everywhere else gold hit all-time highs, silver hit 8-year highs, the 2s/30s Treasury curve began to steepen, and tech stocks continue to soar.

Bitcoin was simply playing catch-up.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.

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Bitcoin Reached Its Highest In Close To A Year Last Month - Forbes

Popular Twitter personality Dave Portnoy, famous for his motto stocks only go up, now wants to learn about Bitcoin (BTC) from Gemini co-founders Tyler and Cameron Winklevoss.

In a Twitter clip extracted from his latest daily show on August 4, Portnoy tells the Winklevoss twins hed like them to explain Bitcoin in a way that I would understand, he said.

Portnoy stressed that he wants them to come in their little rowing outfits, in a reference to the movie The Social Network, where they were shown competing in Harvards rowing team.

Both Tyler and Cameron accepted the invite shortly after.

Portnoy recounted how he once bought BTC in that original Bitcoin age but lost all access to it. Ive spent 20 grand, its just sitting in the ether, he lamented in what appeared to be an accidental pun.

He said that he does not know how to buy Bitcoin or how to maintain self custody of the asset once acquired, which is why he wants the Winklevoss twins to come and explain it to him. He also revealed in passing that he had already talked to them about this, but they wanted a free ad. Portnoy on the other hand wants to get rich by learning about it.

A viewer appears to have suggested he buys Chainlink (LINK) as well, though he immediately replied I dont know how, Ive already explained.

Portnoy is the founder of Barstool Sports, a sports news website. Since the coronavirus lockdowns, he has immersed himself in the world of daily stock trading, reportedly to make up for the closure of sports betting.

He makes daily videos about his fortunes and misfortunes in the stock market, famously saying phrases like stocks only go up or I have as much experience as Joe Dick Tom Warren Buffet.

He reportedly inspired his followers to enter the stock market through retail platforms like Robinhood, though he is known for using E*Trade.

Portnoy and the Davey Day Trader persona are considered the poster child of irrational exuberance that led to events like Hertzs post-bankruptcy rally or Dogecoins TikTok-fueled Rally.

The sudden interest in Bitcoin could be due to plunging profits in the stock market, as the latest rally is primarily led by a few very large stocks like Apple, Facebook and Microsoft. Earlier in the Tuesday show, he complained of a $40,000 loss on Shopify.

While the latest events could result in publicity for Bitcoin among stock traders who follow Portnoy, the interest is unlikely to last longer than the current rally.

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Robinhood Influencer Wants the Winklevoss Twins to Explain Bitcoin to Him - Cointelegraph