Bitcoin was lower for a second day, retreating following an eight-day streak of gains that was the longest since June 2019.
“A period of consolidation could be beneficial,” Simon Peters, an analyst for the trading platform eToro, wrote early Monday in an email, “allowing things to stabilize and cool down.”
In traditional markets, European shares fell the most since June as an apparent mutant strain of the coronavirus in the U.K. led the Netherlands, Belgium and France to impose border closures. U.S. stock futures pointed to a lower open, even after U.S. lawmakers agreed on a new $900B stimulus deal. Crude oil fell nearly 6%. Gold weakened 0.6% to $1,870.67 an ounce.
(Editor’s note: This is the sixth and final installment of First Mover’s recap of how the bitcoin market evolved over the course of 2020 and what it means for the future. Today we cover the period from October through December, when big investors and Wall Street firms suddenly started touting bitcoin as a hedge against central-bank money-printing, causing prices to double and reach a new all-time high.)
Bitcoin proponents have tried myriad strategies over the cryptocurrency’s 11-year history to pitch it to prospective buyers.
Satoshi Nakamoto, the cryptocurrency’s inventor, designed bitcoin to be a peer-to-peer electronic payments system outside the control of any person, company or government. For a while, some cryptocurrency analysts positioned bitcoin as a “safe haven” asset that would hold its value in times of deep economic dislocation and market turmoil. That proposition was dashed in March, when the initial global spread of the coronavirus sent global markets reeling, and bitcoin plunged 25% over the course of the month.
What ultimately proved to be bitcoin’s breakthrough was big investors’ adoption of the cryptocurrency’s potential use as a hedge against central-bank money printing and the debasement of the dollar. The thesis derives from the…