Geopolitical Turmoil good news for Bitcoin?
For those of you that don't believe Bitcoin is a store of value, check these charts out:
This is a daily chart of Bitcoin over the last couple months. Specifically check out the price action over the last 4 days.
Straight up.
Now contrast that with this chart of the S&P U.S. Stock Index:
Again this is a daily chart covering the last couple months, but look specifically at the last 4 trading days.
As you can see it has been pretty rough in the stock market over this time, almost straight down.
More to the story...
Obviously there is more to this situation than just geopolitical uncertainty as Bitcoin is coming out of a period of uncertainty regarding Bitcoin Cash and SegWit.
That combined with massive demand has created a moon shoot for BTC.
However, it is interesting to note that Bitcoin seems to be moving inversely to the stock market and more in line with gold.
Specifically because Bitcoin has often been referred to as digital gold because it tends to behave more like an asset than an actual currency.
Digital Gold indeed!
It seems as global uncertainty spikes, so does the price of Bitcoin.
Bring on the uncertainty, from a purely Bitcoin price perspective! :)
Stay informed my friends.
Image Sources:
https://bittrex.com/Market/Index?MarketName=USDT-BTC
http://stockcharts.com/h-sc/ui
Follow me: @jrcornel
Hey @jrcornel, in my opinion, geopolitical unrest is a major driver, but only one of the many reasons due to which bitcoin has soared to the highest it has.
1- Changing outlook of people towards crypto currencies as a whole.
2- Acceptance of bitcoin at major relailers and merchants, across the globe.
3- A wave of hype and anticipation for bitcoin to reach $5000 mark in the short term.
4- Segwit uncertainties out of the picture.
In times of uncertainty, money looks for safety. Traditionally that has been metals but more so now, people are viewing crypto as a store of value and as a safe haven.
Indeed @grizgal. Totally second your take on the crypto being a store of value. But this value is also very subjective and demand/hype driven. Don't you feel so?
I mean these new crypto firms raising hundreds of millions of dollars in their ICOs, with no proof of concept. My mind boggles to comprehend. Cryptocurrently that solves some of the real world issues are the once which are in true sense the gold mine of value, or as you said a "safe heaven". Let me know what do you think of this? Peace..!!
I completely agree. There are around 981 different t coins now, most of which add no value and solve no real world problems. ICOs (as you mention) are raising billions with a bear a loose concept. I think people have seen prices go up and are scared of missing out, so but anything.
When the market turns there is going to be a blood bath but when the dust settles, those remaining will be a part of the future!
Well said @grizgal..
Lets not get to cocky, Im sure the S&P is doing its best.
I think the latest growth is related to the points you mentoined. It’s really interesting because I think we cannot just overtake the exact same rules from “normal” markets to crypto... There aren’t any geographic borders any more and therefore I don’t think that it will behave the same as a stock market in traditional way - very interesting times! Well written article also:)
Thanks for the great info as always.
You got it!
:)
Interesting correlation. Seems money will flow from stocks to virtual currencies when geopolitical tension rises as a safe haven. Perhaps even over taking gold one day, much to the chagrin of all the gold bugs and bullion hordes ;)
Yes, good analysis. And if you look at the total amount of money pouring into the markets the banks are sure to follow (if they're not already going in deep along with governments). But hey, if you're holding a good amount of bitcoin, I guess that's good news for you.
I think there's something to be said about that. A few years back - when I traded options - I spent some time comparing news stories about war and terror to the stock movements of the biggest weapons/military equipment providers. The correlation was clear. Great post.
Thank you. It's interesting that Bitcoin has become a store of value to investors. Although, Bitcoin seems to go up no matter the environment lately. :)
I know. I'm still very curious to see how the banks entering the crypto market will affect the whole thing. It's a bit disturbing to think that one (1) financial institution has the power (at least theoretically) to dump huge amounts of coins in one chunk.
haha...the biggest buyers and holders of bitcoin is wall street...the fight is against namely Eth allegedely Russia and China (look out for NEO)..They buy bitcoin just to maintain the huge gap between the other coins...who do you think let all this freedom of making coins be...the (g)banksters!! hahaha...
haha ... when u know insider info u will know it can only go up :)) ...on long run 99.95% of all crypto will convert to the top 5 coins...then we will be at 1 minute before midnight ...
You think so?
I believe so, yes! the mujahedin got unprocessed uranium now smuggled from Afghanistan by the CIA...it will be a last card to use but...it will be
For your support i do wanna share the proof check this out!
Pls do follow me @pvhittalamni
https://steemit.com/bitcoin/@pvhittalamni/minergate-com-mining-bitcoins-everyday
I can tell you that gold and silver have been going sideways for sometime now and during this crisis BTC has acted just like an independent free market asset that is a store of wealth and not tied to any government. Physical gold and silver should be keeping pace with BTC because they have very similar properties. However, they are not because the gold and silver markets are bridled by paper sellers who can hold the price down even during a crisis like this. When the big boys get their hooks into BTC watch out for the same thing. I don't know if there is anyway to prevent short selling of crypto currency but it should be looked at. I think you are right in your analysis that with the world in crisis the stock market goes down and BTC goes up but BTC has been outperforming gold every step of the way. Gold is still under $1300 per Troy ounce while BTC recently broke $4000. Gold is wealth with no debt attached and BTC is very similar. The US dollar is a debt-ridden asset. Therefore BTC poses a similar threat to the world currency and taxation systems and will be a target for manipulation just as gold and silver have been. You can consider this pesssimistic or an opportunity to fix something before it breaks. The gold and silver markets are broken, don't let them do this to crypto.
read if ur holding ripple
i have very very bad news for ripple holders i have read the white paper and its not good news at all
xrp tokens will not be used to transfer value they are just ledgers that will be communicating in the network
they can use other tokens also and ignore xrp if they please.
get out while you can guys , oh also this is just xrp is just token its not a real cryptocurrency its not even a blockchain.
help out your fellow crypto investors and warn them of this finding.
https://steemit.com/ripple/@dank-crypomemes/73b8wq-i-have-very-very-bad-news-for-ripple-holders-i-have-read-the-white-paper-and-its-not-good-news-at-all
Will alts ever reach new ATH's vs bitcoin again?