@mk4. However, bitcoin's correlation with the more traditional markets has been going down. If this continues after every bull and bear markets, we might witness bitcoin being considered by traditional finance as an alternative investment for hedging. The interest on a spot ETF for bitcoin is clearly a sign of this. I shake my head to the doubters.
The falling correlation has been noticed since July.
Bitcoin's (BTC) fortune is no longer tied to sentiment in the U.S. stock markets.
The 90-day rolling correlation of changes in bitcoin's spot price to changes in Wall Street's tech-heavy equity index, Nasdaq, and the broader index, S&P 500, has declined to near zero. That's the lowest in two years, according to data tracked by crypto derivatives analytics firm Block Scholes.
The dwindling correlation with traditional risk assets means that crypto traders focusing solely on traditional market sentiment and macroeconomic developments may face disappointment.
Source https://www.coindesk.com/markets/2023/07/05/bitcoin-is-no-longer-correlated-to-us-stocks/
Topic: Could Bitcoin potentially serve as a safe haven in the upcoming economic crisis - page 4. (Read 592 times)
August 15, 2023, 08:22:01 PM
August 15, 2023, 07:28:36 PM
It can, but it doesn't necessarily mean that it will. There's this hope that when an actual economic crisis comes, that people would realize the importance of bitcoin. But there's also an argument to be made that the next few years might be a bit too early for bitcoin to reach the masses.
In the end, we can only hope; and only time will tell.
In the end, we can only hope; and only time will tell.
August 15, 2023, 07:04:21 PM
Hello everyone,
there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think ?
there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think ?
Potentially this could easily be a safe haven actually since as we notice the market price of Bitcoin or if we check the Bitcoin timeline we could easily see that the market price just continues an incline and continue to increase over the years, with the increasing demand of bitcoin and the huge bitcoin adaptation around the world we could easily expect that the market price is going to huge in the coming years, I mean it just the nature of Bitcoin or how it was structure with just 21 million supply and the increasing demand this is probably going to be a huge safe haven actually, I mean one thing is the inflation, with just investing our money on cryptocurrency or bitcoin we could potentially bypass the inflation which is already a big problem around the globe.
It might be similar to gold that holds a value, I mean it was already compared to a lot of gold or even called digital called in the past years, but still, this cryptocurrency or Bitcoin is still a new thing and possibly be the future so there was no guaranteed that Bitcoin is going to hold its value on the economic crisis. I mean last time when there are news about war the market price drop a huge percentage so possible it could be the case in the future as well.
August 15, 2023, 06:59:26 PM
Why not.
In times of economic hyperinflation, I think most of us as investors may indeed seek alternative assets like Bitcoin as a hedge against the potential devaluation of their local currencies. Bitcoin's decentralized and limited supply nature could be attractive to those who are concerned about traditional monetary systems and their potential vulnerabilities which are capable as a safe haven investment.
So IMO, Bitcoin has the potential to offer certain benefits and attributes that could be valuable during an economic crisis, but it's not a guaranteed solution if there's an upcoming economic crisis.
In times of economic hyperinflation, I think most of us as investors may indeed seek alternative assets like Bitcoin as a hedge against the potential devaluation of their local currencies. Bitcoin's decentralized and limited supply nature could be attractive to those who are concerned about traditional monetary systems and their potential vulnerabilities which are capable as a safe haven investment.
So IMO, Bitcoin has the potential to offer certain benefits and attributes that could be valuable during an economic crisis, but it's not a guaranteed solution if there's an upcoming economic crisis.
August 15, 2023, 06:39:06 PM
Hello everyone,
there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think ?
I would say that you shouldnt really be only focused with Bitcoin but rather it would really be always that best or ideal that you should be finding several or a couple of sources of income so thatthere's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think ?
if ever that economic crisis would happen then you would really be able to make yourself that sustain because you do able to earn still some income which it isnt really just limited on your day job.
Im aint saying that Bitcoin isnt a solution but rather it is one of the solutions but it wont really be that enough i would say considering that we do need to spend up on day to day for us to live.
This is why it would be always that ideal or wise on having that multiple source rather than on focusing on a single point.
There's no such thing about safe haven but on the time that you would be able to have that multiple source then whatever the things happen around then you would
really be that confident since you could really be able to sustain and survive on such situation or condition.
August 15, 2023, 06:34:51 PM
The economic crisis I hope it doesn't get bad to the extent of destroying the entire value of local currency, especially the most commonly used global exchange currency (the US Dollar), as it will have a great impact on the price of Bitcoin. If the value reduces significantly, the price of Bitcoin might likely pump up so high that it matches the current dollar value.
Those who are afraid of inflation, which the economic crisis might cause, and have access to Bitcoin will likely covert or exchange most of their assets into Bitcoin in order to escape what's to come. But not everyone will see Bitcoin as a safe heaven no matter the circumstances of the economy, as they still highly believe in their monetary system and how it is being run, and such people will likely want to trust their assets with what they don't believe in.
Those who are afraid of inflation, which the economic crisis might cause, and have access to Bitcoin will likely covert or exchange most of their assets into Bitcoin in order to escape what's to come. But not everyone will see Bitcoin as a safe heaven no matter the circumstances of the economy, as they still highly believe in their monetary system and how it is being run, and such people will likely want to trust their assets with what they don't believe in.
August 15, 2023, 06:32:55 PM
there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
Check bitcoin price history from 2012 to 2016, from 2016 to 2020 and from 2020 to today's price. You will noticed that bitcoin is a store of value. If you have bitcoin, there is chances that you will gain than if you have gold which is another benefit of holding bitcoin. But bitcoin is a highly volatile asset, that still make some people not to see bitcoin as a store of value, but if you hold it in long term, it is a store of value. August 15, 2023, 06:18:07 PM
Hello everyone,
there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think ?
there's a lot of discussion about an impending economic crisis. I'm curious about how Bitcoin will perform during this crisis. Will it function as a safe haven similar to gold? Or will its value decline significantly?
what do you think ?
Jump to: