October 17, 2019

Bitcoin a speculative bet, market players say

London: Bitcoin has recently increased, as trade tensions between the US UU. And China has not reflected its safe-haven assets, but its potential for rapid growth, cryptocurrencies, and currency dealers said Tuesday.

As the US stock market. UU. It fell 3 percentage points, the largest currency on Monday rose more than 7%. As investors are concerned about the impact of trade wars on the world economy, safe assets from the yen to gold and government bonds, which are expected to maintain or add value in volatile markets, have also recovered. .

Encryption enthusiasts say the move is a sign that Bitcoin will be a safe haven. His argument is that Bitcoin is not affected by geopolitical tensions or government intervention because it is fragmented.

Unlike the legal currency issued by the government, cryptocurrencies are generated by miners around the world who compete to solve computer problems. Its supply is also limited to 21 million, and the few fans think it has an innate value, as do rare metals.

The correlation between declining shares and bitcoin earnings seems to exist.

After a major turmoil in the market last year, including US President Donald Trump, threatened last week to cut more Chinese imports through tariffs, Bitcoin rose sharply as the stock market collapsed.

Since Trump was threatened Thursday, Bitcoin skyrocketed 23 percent and the Standard & Poor’s 500 indexes fell 4.6 percent. The president of the USA UU. He issued a tweet in May in which he said he would increase tariffs, with a 41% increase in bitcoin and a drop in the US stock market. UU. 3.8 percentage points.

In December, due to the tough attitude of the US Federal Reserve Board. UU. And to the weak growth of corporate profits in the future, Bitcoin increased its share price by 18 percentage points after a 10% drop in the week.

Marcus Swanepoel, CEO of Luno, a London-based cryptocurrency platform, said investors tend to change a small portion of their portfolio to Bitcoin when the market is volatile.

But he added, but the move to promote Bitcoin is not a hedge, but potential for its huge profits.

“If you’re wrong, you won’t lose a lot of money, but if you’re right, we’ll say a great return,” said Swanepoel.

Like gold, bitcoin tends to be consistent with market volatility.

But according to Forex.com analyst Fawad Razaqzada, any correlation with the traditional behavior of the hedging paradise may be more a short-term trend, indicating any long-term trend.

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