Bad news for Italy is good news for Bitcoin

in bitcoin •  5 months ago

Bitcoin catches a bid after political uncertainty grips Italy and Europe.

It hasn't been pretty for bitcoin investors these past few weeks, but it appears they may finally have caught a much needed break.

As I type, bitcoin is currently trading over $7400, a far cry from $20k but a nice little bounce off of the $7100 number seen just a few hours ago:

(Source: https://www.tradingview.com/symbols/BTCUSD/)

The spike seemed to coincide with other risky assets selling off, likely related to what is going on in Italy and Europe.

What is going on exactly?

Investors seemed to be worried that another Italian election was imminent. Which may not sound all that bad on the surface, but the big fear is that the results could bring about a big change for the eurozone.

Specifically, the fear is that a win by the populists parties could lead to Italy leaving the eurozone all together, which would have a destabilizing affect on the region and could cause others to follow suit.

Italy is currently the 3rd largest economy in the region.

The fear is that Italy leaving could be the start of a breakup of the entire eurozone.

Italian 2 year yields spiked over 150bps this morning on the turmoil, while the Dow Jones Industrial Average sold off roughly 1.7% in early trading:

(Source: https://www.tradingview.com/symbols/TVC-DJI/)

Just about all risky assets are selling off this morning in relation to this news.

Gold catches a bid.

Gold seems to have caught a bit of a bid in relation to the uncertainty coming out of Europe.

This is no surprise as gold has long been seen as a safe haven asset in times of uncertainty.

Interestingly, gold is not rallying nearly as much as bitcoin, up about .4% currently compared to bitcoin's 5% gains.

(Source: https://www.tradingview.com/symbols/XAUUSD/)

Though, bitcoin is likely seeing an exaggerated move up on the news due to it's oversold conditions. Basically, it was ripe for a pop, just looking for an excuse to do so.

Bitcoin again seen as an uncorrelated asset.

This is good news that bitcoin is spiking today when the majority of risky assets are selling off.

Gold is spiking as well, but not to the extent that bitcoin is.

It's important that bitcoin is spiking when others are not in order to cement it's position as an uncorrelated asset in the minds of investors.

Being an uncorrelated asset is what is going to cause it to get added to macro fund manager's portfolios, globally.

At an inclusion of just 1%-10% of a portfolio is enough to cause bitcoin to go significantly higher over the coming years.

Finally a bit of good news for bitcoin and cryptocurrency.

Stay informed my friends.

Image Source:

https://www.theflagshop.co.uk/italy-flag-nylon.html

Follow me: @jrcornel

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Deflation is a downward pressure on commodities and on cryptocurrencies.
In America, bailouts are inflationary, but in Europe, bail-ins are deflationary due to the leverage of fractional reserves.

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@youtake pulls you up ! This vote was sent to you by @stimialiti!

Her amazing article @jrcomel

Wow you looks like crypto expert. New follower🙂

Pizza 🍕 & Bitcoin! Love those Italians 😁

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The worse it gets for them, the better for bitcoin?

June will be very good moth for cryptos

next recession is closer than we think

How data and facts, but how do we know the two are related? Data released today showed crypto markets peak on the 6th of every month. A lot of investors are going long before June 6th, then it will subsequently drop. Sometimes the market moves and we jump to conclusions, though we may not always be right.

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Yea, similar thesis to gold investors...

It was absolute mayhem across the board today. Starting from widening of sovereign bond yields in europe, primarily italy but moving on to portugal, spain and greece. And then it was proper risk off. 10 yr US treasury yielding 2.8% and it was nearly yielding 3.1% last week. Gold was also marginally down. Safe haven waa UST today. Dollar continued its momentous upside against pound and euro. Classic risk off in markets. And then a big bounce in bitcoin and alts. This 0 correlation is what i want to see for a long time. It a very solid reason for wealth managers and asset allocators to dive into bitcoin.

Hopefully the day closes green for btc followed by a few more green days.

There has never been anything like leaving Europe in Italy, also during the last elections . Not sure what is your source, but it isn't accurate. Populists parties are well aware leaving Europe isn't even slightly an option.

The price of BTC are decreasing in my country.last week it decrease 6000+BDT

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It is decreasing everywhere, along with the entire crypto space.

This the first good news i'm hearing today, thank you.

Good to see some advancement of Bitcoin today. Thanks for sharing @jrcornel

Interesting stuff, thanks for the research!

This seems like a good news, we needed one for a while now, lets hope crypto can pickup and reach the all time highs again :)

Good article, yesterday the cryptomarket got really red numbers and today we all started to have hope again.

Ironically you see where it caught the Bid? The trendline which is not surprising. This is only a bounce before lower unfortunately. Needed a story line to relieve the downward pressure again.

The Italian President seems to be taking his orders from the Bundesbank rather than the Italian electorate.

Thanks for share this video . Upvote and resteemed it .

Amazing.Good Job My Friend.

I hope you are right but I fell it might be to early to say conclusively that the increase has come because of the Italy situation.

Crypto is the new gold!

This is a grate information... Now you can excel!!

I hope it continues like that or that it improves even more

i have to make a pizza day bro

we have two outputs, physical gold and crypto on Ledger Nano S :)

High waves will not always bring a calamity as well as the opposite that happens with bad news for Italy.

An honor can read your post and thank you for giving us useful knowledge @jrcornel

How about Global Competition now?

Very bad things can happen in different countries including Italy and europe but this becomes a benchmark in solving a challenge sometimes political problems will worsen the economy in every country that is in turmoil in politics but how this view can be solved with joy and how a management concept can save the country from economic turmoil.

How to Prepare Investors in Global Market Satisfaction?

It is very promising to investors is the various ease continues to be a reference for global market control, the wave of change to be a good challenge for bitcoin itself thing that continues to be a benchmark is how to trade and market control.

How can the problem be resolved?

I would like to give a view that the problem occurs is a formidable challenge that must be resolved and a benchmark that the readiness of the State to dominate the global market, a belief that the hall is passable and we can win the global market.



We win together

I have noticed these factors in the world economy and sometimes it seems that we crypto investors are cheering bad news in finance... but I don't think that is what we are really feeling. We are excited about cryptos offering a way out of this corrupt system.