Bitcoin as a Safe Haven: Yet Another Recession Indicator Flashes
For the umpteenth time in a matter of weeks, a recession indicator has started to flash. Bitcoin, which has begun to be classified as a “safe haven” asset, may stand to benefit from such a move in traditional financial markets.
Related Reading: Bitcoin Dropping Under High $8,000s Now “Highly Unlikely”: Here’s Why
This Week Could Be Big For Bitcoin as Breakout Nears
Monday September 16, 2019
Bitcoin traders turned off their terminals and occupied themselves with other things this weekend as the king of crypto barely moved. The BTC trading range is getting tighter which can only mean one thing...
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Recession Inbound; Bitcoin Can Outperform
Sunday Sees Red as Crypto Markets Dump $10 Billion and Bitcoin Slides Again
Sunday September 22, 2019
Following a largely bullish week for the majority of crypto assets, the bears have come out to play at the weekend. A slide back into four figures for Bitcoin has dragged most of the...
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Over the past few months, the world’s analysts and investors have begun to fear a recession. While some are as optimistic as ever, calling for new highs to be established for the S&P 500, more and more data is hinting at an impending drawdown in traditional finance. Bitcoin, as aforementioned, might be the beneficiary of such a move.
As pointed out this week by Twitter account “OddStats”, U.S. Treasury data shows that one-month Treasuries yielded more than all maturities through to the 30-year Treasury.
What this means is that a short-term purchase of government debt had a higher yield than all long-term debt. For those with knowledge of basic economics, this makes close to no sense.
Bitcoin Sheds $10,000 Support Again Ahead of Bakkt Launch
Sunday September 22, 2019
Ahead of the launch of Bakkt’s Bitcoin (BTC) futures, bears have continued to assert control over the cryptocurrency market. Ouch. As of the time of writing this, the Bitcoin price has fallen to $9,900,...
The post Bitcoin Sheds $10,000 Support Again Ahead of Bakkt Launch appeared first on 12bitplay - Bitcoin Play.
So, according to the US Treasury data, something very Odd happened today.
The 1m Treasuries yielded higher than all longer maturities (thru the 30y). That hadn't happened in 12 years.
In fact, it's only ever happened in 2006 and 2007 and today. pic.twitter.com/fRqngDMIvv
— OddStats (@OddStats) August 16, 2019
OddStats points out that the last time this happened was in 2007 — prior to the Great Recession. Should history repeat, the market may have another few months to run prior to a drop.
Speaking to an analyst a year or two ago, they may have suggested that Bitcoin will fall in tandem with equities, just like blue-chip stocks getting slammed in 2008.
Related Reading: Crypto Tidbits: Bakkt’s Bitcoin Futures, Coinbase & Xapo, IRS Cryptocurrency Crackdown
But now, it seems that a recession will only do good for Bitcoin.
Metro, the United Kingdom’s highest-circulation newspaper, recently released a Bitcoin article to its website. In it, a writer at the outlet accentuated that BTC is “less influenced by instability in the economy” — a safe haven asset or store of value — and is much more private than traditional forms of money.
Wall Street analysts and a number of prominent crypto investors have echoed this analysis.
Bloomberg recently spotted that the correlation between gold and Bitcoin has nearly doubled in the past six months, rising to just over 0.842 from 0.496. Just look to this chart from Binance’s research division, which shows that when gold spiked due to a fresh Trump tariff, so did the world’s favorite cryptocurrency.
$BTC has rallied together with multiple safe-haven assets after Trump's latest tariff storm.
Will the trade war continue to be a catalyst for #Bitcoin's price growth? pic.twitter.com/Ghf0eqvazF
— Binance Research (@BinanceResearch) August 2, 2019
With a recession brewing, which has been underscored by macroeconomic turmoil and geopolitical uncertainty (Hong Kong protests, trade wars, irresponsible monetary policy, etc.), gold is likely to rally, as will Bitcoin.
Featured Image from Shutterstock
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