Bitcoin rises due to world economic turmoil
An information released through Tradingview about the development of Bitcoin that occurred in recent days, which was written by Anthony Pompliano in his article greatly surprised the experts of the world economy.
Anthony Pompliano, founder of Morgan Creek Digital, assessed the US-China trade war and the weakening yuan as a global economic turmoil. He said the situation had influenced the recent rise in the price of Bitcoin.
"Regarding chaos, there are global assets that are used as a tool to protect the value of money, that is, Bitcoin. Right now we are at a point where it 'doesn't make sense' for investors not to buy crypto assets such as Bitcoin as part of their portfolio," said Pompliano in his article on Off The Chain, Tuesday (06/08/2019) then.
On July 31, 2019, the exchange rate of the US dollar against the yuan rose to 7 yuan. This is the first time this has happened in the last 10 years.
Pompliano reasoned, Bitcoin is an asset that provides large returns that are not directly related (uncorrelated, asymmetric return profile assets) with other traditional assets, such as stocks, bonds, and fiat currencies.
"The price of Bitcoin is proven to be inversely proportional to the increasing global instability. For example in May 2019. At that time the US-China trade war was getting stronger, with the threat posed by America to raise import tariffs from countries other than China. Bitcoin at that time rose 55 percent and showed a "negative correlation" with the S&P 500 and gold, "he said.
To reinforce his opinion, Pompliano also pushed data from Alex Saunders, Founder of Nuggetsnews.com.au, where in recent weeks the price of gold and Bitcoin was negatively correlated with the S&P 500.
When the S&P 500 plunged to 2,844.74 on August 5, 2019, the price of gold and Bitcoin actually strengthened. Gold was traded in the range of US $ 1,470 and flashy Bitcoin at US $ 11,700.
"I think more funds will go into Bitcoin in the current global market downturn," Saunders.
Decisively Pompliano, at this time we face periods that are very volatile and full of uncertainty. Even institutional investors have long sought assets that are not correlated with ordinary investment instruments, which are worthy of being used as portfolios.
"Well, Bitcoin is now present as the perfect instrument to protect the value of money. So, it's good for investors to sell all their assets and switch to Bitcoin. Even if it's not 100 percent, at least one to five percent allocation is enough, "he said.
Maybe the giant investors are manipulating the market and get some other benefits from the movement of tokens or coins in the digital world, the more interesting it seems.
An interesting review from you
It's possible, especially since many markets have developed tokens now
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