Galaxy Digital CEO Mike Novogratz has attempted to explain what exactly happened to Bitcoin's safe haven status. In his new tweet, he writes that investors tend to 'take leverage down' and book profits during such black swan events.
via Imgflip Meme GeneratorNot a hedge asset From the U.S. stock market suffering from its quickest correction since the Great Depression to oil prices plummeting 16 percent — this week will surely go down in history.
When global markets got gripped by a ruthless sell-off, Bitcoin failed to serve as a store of value, which many believe should be its main use case. In fact, BTC performed worse than any traditional asset, shedding 15 percent of its value in less than a week. At press time, it is just trading just below its key support level of $8,500.
Bonds, not BitcoinWhile gold bugs were quick to dismiss Bitcoin's as a hedge against economic uncertainty, Novogtatz's claim about investors booking profit definitely holds water.
One of the biggest surprises of this tumultuous week was the gold price recording a five percent drop on Friday. The yellow metal is considered to be the most robust store of value.
Just like during the 2008 crisis, investors started liquidating both stocks and gold for covering their margin calls. Bonds and cash turned out to be the real safe haven.
https://u.today/mike-novogratz-explains-why-bitcoin-btc-is-failing-as-safe-havenDuring his recent interview with TD Ameritrade Network, Ari Paul, the CTO of BlockTowerCapital, agreed with Galaxy Digital CEO Mike Novogratz that more money printing initiated by central banks around the globe could be the most bullish case for Bitcoin (BTC).
Is #bitcoin’s store of value use-case broken after its big break from bonds and gold? $btc@AriDavidPaul weighs in:
However, he predicts that Bitcoin could mirror gold in 2008 with a delayed reaction to the looming economic crash.
More aggressive rate cuts As reported by U.Today, the U.S. Federal Reserve did a 50 bps emergency rate cut on March 3 to cushion the devastating blow from the coronavirus pandemic. However, it provided only a temporal relief for the equities market that had its worst day since the previous recession on March 9.
Now that President Donald Trump calls the Fed 'pathetic' and pressures it to cut rates in a more aggressive manner, things could get really bullish for Bitcoin as Novogratz predicted earlier.
"I totally agree with Novogratz that the strongest bull case for Bitcoin is what we are seeing right now, which is the entire U.S. Treasury curve below one percent," Paul said.
https://u.today/mike-novogratz-thinks-its-strongest-bull-case-for-bitcoin-btc-ari-paul-agreesblah blah blah.. no excuses. BTC was designed to shine in a moment like this. And we are failing.
As a HODLer i'll keep my faith, while singing...
I'm taking a ride
With my best friend
I hope he never lets me down again
go Honey Badger, go!!