Crisis Impact: Most Assets Returned to 2016 Prices While Bitcoin Holds Strong
Bitcoin and the rest of the cryptocurrency market has been collapsing alongside traditional equities, precious metals, and the rest of the financial world as a liquidity crisis unfolds.
Fears over the coronavirus has investors preparing for the worst, cashing out assets at a rapid rate, and driving down prices of most assets to prices not seen since 2016. Bitcoin, however, has held strong by comparison, trading at prices still well above its 2018 bottom.
Traditional Asset Markets Get Slammed Amidst Liquidity Crisis and Pandemic Outbreak
Catastrophe has hit markets over the last few weeks, as the coronavirus has reached pandemic proportions and cases continue to climb globally.
As investors brace for a potential recession, and one unlike the world has ever witnessed in the past, assets are being cashed out in a panic.
Related Reading | No Haven Safe: Silver, Gold and Other Precious Metals Nosedive Alongside Bitcoin
The sudden surge in panic-selling is driving prices of most assets down to levels not traded at since 2016.
Across the stock market, major indexes like the Dow Jones Industrial Average, S&P 500, and Japan’s Nikkei 225 have fallen by a large margin to prices of late 2016.
Here’s Why Bitcoin’s Bullish Monthly Close Isn’t Enough to Thwart a Massive Selloff
Wednesday April 01, 2020
Following Bitcoin’s bout of consolidation within the mid-$6,000 region, the benchmark cryptocurrency has seen a slight decline that has led it down towards the support that has been established around $6,000. This decline today...
The post Here’s Why Bitcoin’s Bullish Monthly Close Isn’t Enough to Thwart a Massive Selloff appeared first on 12bitplay - Bitcoin Play.
In the typically stable precious metals market, silver fell to levels dating back to the last recession, and platinum fell to the lowest price in decades.
These 3 Factors Show Bitcoin Has Further to Fall After Hitting $6,000
Sunday March 29, 2020
Over the past 24 hours, Bitcoin hasn’t performed too well. After maintaining the $6,700 support for a number of days, the cryptocurrency tanked on Friday evening in a move that shocked investors, falling as...
The post These 3 Factors Show Bitcoin Has Further to Fall After Hitting $6,000 appeared first on 12bitplay - Bitcoin Play.
Gold, meanwhile, has remained relatively strong proving its value as a safe haven asset.
Bitcoin Holds Strong, While Other Assets Collapse to 2016 Prices
However, even gold suffered extreme losses over the last few weeks. The same performance occurred during the start of the last recession, but later gold not only held its value but began to climb as inflation took hold across the globe.
Bitcoin often called the digital counterpart to gold, shares many similarities with the precious metal, such as a limited supply.
It’s been said that due to this attribute, Bitcoin could behave similarly to gold in the face of a recession. The only problem is, Bitcoin has yet to actually face a recession.
Trader Who Predicted XRP Would Hit $0.13 Thinks This Comes Next
Friday April 03, 2020
In the middle of February, when the cryptocurrency market (XRP included) was pumping to multi-month highs, emotions were running high; there was a class of Bitcoin investors who expected their favorite orange coin to...
The post Trader Who Predicted XRP Would Hit $0.13 Thinks This Comes Next appeared first on 12bitplay - Bitcoin Play.
The only ten-year-old asset, however, is already showing much resiliency while other assets tumble. While most of the financial world has been set back to 2016 or even earlier, Bitcoin has thus far held strong above its 2018 “bottom” at $3,200.
All other assets returned to 2016 prices. btc is very bullish
— loganhan_ (BTC above 100,000usd 2020 4Q) (@loganhan_) March 18, 2020
The asset is still trading well above the 2018 close and 2019 yearly open, and inflation hasn’t even begun to take shape in the current recession that’s only just getting underway.
Related Reading | Will Bitcoin’s True Value Proposition Shine During End of Times Scenario?
Governments are preparing much-needed stimulus packages and corporate bailouts that will devalue fiat currencies, potentially allowing Bitcoin’s true value proposition to shine through.
The fact that Bitcoin is holding this strong, gives the cryptocurrency more validity as a potential safe-haven asset, and a possible light in the coming darkness.