Bitcoin Price Hangs In The Balance As Trade War Explodes -- What Next?
Bitcoin price analysts say now is a pivotal time for the world's largest cryptocurrency.
Equity markets are jittery and capital inflows into crypto are strong as investors try to figure out where to put their money.
The price of Bitcoin and other cryptos, while closely intertwined, tend not to correlate to the wider equity or debt markets.
Returns are uncertain elsewhere and a bull-running cryptocurrency market is looking mighty attractive right now.
Investors are treating Bitcoin as a safe haven hedge against fears that a deepening US-China trade war will send stocks plummeting.
More on that below. Bitcoin has been on a rollercoaster ride since the bearish crisis of late 2018. While JP Morgan advised BTC could fall as low as $1,260, anyone who bought the dip when the Bitcoin price hit a 6 February floor of $3,405 would now see their portfolio up a stunning 149%. Compare that with stock and bond markets in the US and Europe that are teetering on the brink.
Iain Wilson, an advisor to NEM Ventures, puts it like this: "The argument for Bitcoin as a low-correlation asset, held as part of a diversified portfolio, gained limited traction during the 10-year equity bull run.
It now appears that equity markets have seen the top and the question arises, where do you invest?
"The US bond market curve is inverted, much of the G7 government markets have negative or extremely low yields, credit market spreads are tight and some people are speculating when, not it, the next round of central bank quantitative easing will begin.
Should we really be surprised that BTC is a strong performing asset in 2019?" Trade War Storm Clouds Blacken The signs of doom are there for anyone willing look ahead.
It’s not pleasant reading for investors, but anyone with life savings on the line has to be realistic.
Morgan Stanley’s cross-assets team says this week their cycle indicator has switched from ‘expansion’ to ‘downturn’.
Their analysts advise investors be on the defensive to protect what they have. The IMF warned of a global slowdown in April.
Its widely-read 2019 World Economic Outlook says: "Trade tensions increasingly took a toll on business confidence and, so, financial market sentiment worsened, with financial conditions
tightening for vulnerable emerging markets in the spring of 2018 and then in advanced economies later in the year, weighing on global demand."
Read the full topic at
https://www.forbes.com/sites/tomrodgers1/2019/06/03/bitcoin-price-hangs-in-the-balance-as-trade-war-explodes-what-next/#2c5eb2431967
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