Bitcoin Holders Search for 'Hopium' as BTC Breaches USD 40K, Gold Rises
The bitcoin (BTC) price dropped again today, after losses in the stock market, geopolitical tensions, and prospects of rising rates weighed on sentiment in the digital asset market. However, some are hopeful that the worst is now behind us, with one leading institutional investor reminding bitcoiners that network growth is what matters in the long run.
In either case, BTC dropped below the USD 40,000 level for the first time in two weeks today and is now fluctuating around this level. At 17:38 UTC, BTC trades at USD 40,127 and is down 4% in a day and 8% in a week. BTC is also down over 20% in a year.
Notably, the decline for bitcoin happened as the price of gold soared higher in the market in a rally fueled by fears over an escalation in the Russian-Ukrainian conflict. However, it is worth noting that the latest rally for gold comes after almost a year-long period of consolidation mostly between the USD 1,700 and USD 1,900 levels.
At the time of writing, gold stood at USD 1,894 per ounce, after touching a high of USD 1,902 earlier in the day. Today’s high marks the first time since June last year that the yellow metal has moved above the psychologically important USD 1,900 level.
Since the beginning of the month, the price of gold is now up almost 6%.
Meanwhile, Jurrien Timmer, director of global macro at asset management giant Fidelity, offered some 'hopium’ for BTC holders today.
“Bitcoin has been in a choppy trading range for almost a year now, bouncing between [USD] 30k and [USD] 65k,” Timmer tweeted, noting that while price discussions continue to be “a favorite hobby for many,” the network itself is more important.
“What matters most is where the demand curve is going, and the answer continues to be ‘up and to the
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