BTC - Bitcoin acting very much like a safe haven as stocks sell offsteemCreated with Sketch.

in #bitcoin5 years ago

Bitcoin is acting safe-haven ish...

On a day when there is a general risk-off sentiment going around, bitcoin is catching a major bid.

The Dow is currently down 400 points, oil is down, most risk assets are selling off today.

However, gold and bitcoin are up:

(Source: https://twitter.com/jsblokland/status/1221877977555898368)

Bitcoin is currently up roughly 5% and inching it's way back to the $9k area.

Further proof that Bitcoin can act as a safe haven...

This is yet again further proof that bitcoin does act as a risk off safe haven in times of turmoil.

Though, that is certainly not the entire story as it doesn't always act like that.

It is generally not correlated with much of anything, though it's strongest correlation seems to be towards gold and as a risk off safe haven.

Why is it going up currently?

Right now there is a bit of a scare that the next global pandemic could be starting.

It is called the coronavirus.

Not to be confused with the beverage.

It seems to have originated in China and is usually only transferred among animals.

This version seems to have mutated and is now highly contagious among people.

Close to 100 people have died so far and thousands of cases have now been reported:

https://www.cnbc.com/2020/01/27/china-coronavirus-death-toll-climbs-to-81-with-nearly-2900-cases-worldwide.html

As the world braces for what could be the next global pandemic, bitcoin is enjoying its time in the sun.

Stay informed my friends.

-Doc

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"Bitcoin acting very much like a safe haven as stocks sell off"

Not really!

First of all, I would not call a mere 1.4% drop in stocks a "sell off". This is simply another market correction, the likes of which we have seen before, and will more than likely continue to see again.

Secondly, there is really no such thing as a sell-off, because in order to sell, there has to be buyers. Without buyers, there could be no sell-off. So if one sells, and another buys, why call it a sell-off, why not instead call it a "buy-on"?

Thirdly, I would never call Bitcoin a "safe haven, especially given it vast price swings. A safe haven must be safe (stable). Bitcoin is anything but stable. With perhaps the one exception recently in 2008, the stock market has never shown a percentage swing as great as we often see with Bitcoin.

If anything, I would consider stocks (at least some of them) to be a much safer haven than Bitcoin, or in fact, any cryptocurrency ever will be.

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BTC ‌Cobb is in a tight position in the Kiputocracy Market Place. Two friends I know are Bitcoin prices were low then they started accumulating millions of coins together. Then the two friends become billionaires thank you

Not sure what this is saying exactly, but it sounds like some people made money in bitcoin, good for them!

I saw shocking videos about coronavirus

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