The Currency Analytics
By Steven Anderson
Bitcoin As Prospective Safe Haven
Bitcoin as Safe Haven is a Fallacy
Bitcoin has touched upon $8400 after the Iranian Missile Attack. This is the new high of 2020. The token touched $8,438 before retracing slightly.
The token trended upwards from $8,080 to $8,400 and further until $8,438 before it retraced to $8,400.
BTC is now establishing and sustaining its position as a leading safe-haven asset in the cryptocurrency market admist geopolitical tensions.
There is a growing demand in the Fixed Income Exchange-Traded Funds (ETFs). This provided for the largest inflow of investors in the year 2019.
The fixed income ETF is particularly built around bonds and other kinds of fixed assets. These funds provide for a hedge versus the economic dangers involved in the market.
For instance, in the US, the overall economic condition has been good and bullish; however, 2019 shifted the whole situation towards fear.
The overall market is in a confusion of what the future holds. The bonds are relatively safe. The investments are helpful.
The fixed-income ETFs provides for general concerns about the market being highly volatile. In turn for safety, investors are willing to take lower returns.
There is a high potential for market loss due to fiscal policies which are poor. The risk aversion among investors is increasing and they are looking for better investment…
While the bitcoin bulls would like to claim that Bitcoin is the real gold, there are counter theories.
Oanda's Craig Erlam stated, "These people ignore all the times that it moves inversely with sentiment." He further added, "Bitcoin is not gold and certainly not gold 2.0."
Craig agrees to the fact that the cryptocurrency has rallied since Friday; however, he opines that there has not been any extraordinary move and states that it is trending in the…
The analyst concluded stating, "The evidence isn't there, and fundamentally, it's too volatile and unpredictable to even be considered."