Over the past couple of weeks, Bitcoin has not been able to rise above $4,000. Because of this, demand for the digital asset, which was once drawing people away from traditional investments such as gold, is waning and attention is moving elsewhere.
According to Jan Van Eck, the Chief Executive Officer of Van Eck Associates, demand is moving away from Bitcoin and back to a more traditional commodity – gold.
Source: LinkedIn
In December 2017, Bitcoin peaked above $20,000. In the 12 months leading up to this, the cryptocurrency’s value managed to increase 25 times over. During the same period, gold rallied 4 per cent.
Now, Bitcoin’s value has plummeted by 82 per cent whereas gold is up by 2.5 per cent. According to Tim Seymour, founder and chief investment officer of Seymour Asset Management, this move away from Bitcoin might be hard to reverse.
Source: Seymour Asset Management
The cryptocurrency bear has a nasty bite
The cryptocurrency market was weighed down by a bear market for most of 2018. Unfortunately for digital asset exchanges, the bear had a nasty bite.
As , numerous exchanges and crypto-focused companies have had to result to unpleasant measures to stay afloat, which mainly consisted of letting go of their employees.
Companies such as Bitmain, ConsenSys and more have by letting go of large portions of their staff. In addition, large cryptocurrency mining firms are pulling out of the industry.
In December, announced that it would be closing down its cryptocurrency-related business as the profitability of its mining chips was falling just like the value of Bitcoin.
Only one week later, reports surfaced that e-commerce giant DMM.com was in Kanazawa, Japan.
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