Bitcoin rallying along with safe haven assets
Bitcoin is acting like a safe haven asset, for now.
Bitcoin has been very interesting over the past few years.
It had been trading much more like a risky asset as opposed to a safe haven asset for much of the past 2-3 years, seeming to do well when risky assets, such as stocks, did well.
Also, seeming to benefit from a weaker dollar and talk of more QE.
However, yesterday a trump from Donald Trump put bitcoin firmly back in the safe haven asset class.
Trump tweets...
If you didn't catch it, Trump announced a fresh round of tariffs on China.
Stock markets tanked, and gold/bitcoin caught a bid...
Check it out:
(Source: https://twitter.com/BinanceResearch/status/1157330868362346496)
Will this safe haven label hold in the longer term?
Of that I am not sure, but either way, if the dollar is going to be going lower, whether bitcoin is a safe have asset or a risky asset, it should go up.
So, either way, we are covered. :)
We have a very good environment for bitcoin currently.
Should we have a global recession along with the weakening dollar, that may be another story entirely, but we will re-evaluate then.
Stay informed my friends.
-Doc
I think it will keep this status and a safe haven asset. But I agree with you, whatever happens, if the dollar keeps moving like this BTC will go up.
The dollar was weakening most of 2017 while bitcoin was doing very well. I think we see that pattern play out again here starting very soon.
This is especially interesting because bitcoin was recently considered to be far right on the risky asset spectrum...
I think your thoughts are very good, I hope to discuss with you, you can add my Whatsapp+852 51739707
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Thanks.
As long as the crisis is not too wide spread, it should outperform. However, as we learned in the last financial crisis, things can get correlated and dump quickly if it is severe!
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Yep. If we have a global recession, I can't see bitcoin doing well in that environment as investors will need liquidity and take it where ever they can get it.
I think your thoughts are very good, I hope to discuss with you, you can add my Whatsapp+852 51739707
Dear @jrcornel
Interesting choice of topic. However I'm not sure if many people out there would actually consider bitcoin to be a safe heaven asset. I surely don't see it that way at the moment.
Politicians and regulators do not seem to know how to approach this technology and sometimes their words are causing chaos.
Again, great reat
yours, Piotr
I don't either, though it is sure trading like one at the moment.