Bitcoin Faces Critical Week to Confirm Safe Haven Potential — Analyst
Bitcoin Faces Critical Week to Confirm Safe Haven Potential — Analyst
Bitcoin remains strong despite worrying signs from stock markets, leading to suggestions that its rubber-haven status may soon render.
3458 Total views
100 Total shares
Bitcoin (BTC) may have begun a "decoupling" from traditional markets to focus on toll gains, but this week will be crucial, says Willy Woo.
In a serial of tweets on March 23, the respected statistician said that recent price gains for BTC/USD in the face of continued turmoil for stocks and the wider economy were encouraging.
Woo: Bitcoin "seeking decoupling" from markets
"Decoupling of prophylactic havens from equities showing hints it may have begun (i.eastward. when BTC and Gold go bullish)," role of one post reads.
"Nosotros'll have more than confirmation in a week."
At press time, Bitcoin traded at around $five,800, having climbed almost 30% over the past week.
A failure by the Usa to concord on coronavirus stimulus measures meanwhile placed new selling pressure on stock markets across the world. Wall Street was nevertheless to open, just U.Due south. stocks' futures had already stopped trading automatically later on crashing five% in simply three minutes.
This, analyst Alex Krueger noted, was that the market place's quickest descent to the maximum permitted losses in history.
Bitcoin returns versus U.S. 10-year bond rates. Source: Skew.com
BTC could get its 2008 moment
For Woo, meanwhile, tentative signs that Bitcoin was recovering from investors selling to cover losses elsewhere suggested that it would reenact aureate'south growth later the 2008 financial crunch.
Such behavior would follow what he describes equally "flying to safe 101." He connected:
"1) Traders exit risk-on leveraged positions and sit in USD. Retail investors sell to USD for runway (hard times ahead). All avails crash against USD.
2) After pinnacle fear, best assets for hedging the times ahead rise in value (Gold 2008, Gold & BTC 2022)."
As Cointelegraph reported, further pain may yet exist in store for Bitcoin investors before a full recovery gets underway. Final week, trader Tone Vays said that he would not be shaken past a dip to as low as $2,000 earlier May's block reward halving.
Source: https://cointelegraph.com/news/bitcoin-faces-critical-week-to-confirm-safe-haven-potential-analyst
Posted by: mcleandentelf1969.blogspot.com
0 Response to "Bitcoin Faces Critical Week to Confirm Safe Haven Potential — Analyst"
Post a Comment