Indexica Reports: Any Factor Can Make Bitcoin Move Just Like Gold or a G-10 Currency
- In 2019, Bitcoin went as high as $13,900 only to lose about 40 percent of its value. This drop in Bitcoin’s price has been attributed to a number of factors.
Intercontinental Exchange launching the physically delivered Bitcoin futures platform Bakkt’s disappointing performance, recording a meager 72 BTC futures contracts in the first 24 hours, has been seen as the factor that triggered the price’s crash.
While some pointed to the unwinding of long positions as the driving factor behind BTC price nosediving, others pointed to the technical bearish signals that triggered the leading cryptocurrency to take a breather after surging more than 200% in the first half of 2019.
But all these factors might not be what has been behind the 40% drop.
According to Indexica, a Los-Angeles based alternate data provider, this fall has less to do with Bitcoin itself and more to do with the growing cryptocurrency ecosystem.
As per their index built on data from Aug.1 through Oct. 1, the movement in the price of the flagship cryptocurrency is driven by new blockchain technologies and competing for digital currencies.
Actually, the talk around Mastercard’s partnership with R3 to develop a new blockchain payment system, the study stated has been a strong driver of recent returns.
“Now that Bitcoin is a big kid, anything can make it move, just like anything can make gold or a G-10 currency move,”
Zak Selbert, chief executive officer at Indexica told Bloomberg.
“Bitcoin is part of the financial landscape in a very intertwined and mature way.”
Selbert said this sensitivity of Bitcoin to the development of competitors is another sign of a coming of age.
Moreover, Bitcoin’s strongest predictive measure, Indexica found was its “quoteability” that showed the digital asset was most often talked about in concurrence of traditional currencies.