What Safe Haven? Bitcoin Behaves Like Risk-Asset During Evergrande Mayhem
Bitcoin has suffered in the wake of the brewing Evergrande crisis in China. The leading Chinese junk-bond issuer has now missed two loan repayments. Its connection to the broader crypto market has been linked to Tether. The company behind the dollar-pegged stablecoin is said to hold bonds with the Chinese bank, which is one of […]
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Bitcoin was built with many of the qualities typically associated with a safe-haven asset: it is portable, censorship-resistant, and independent of traditional financial systems. In theory, those characteristics make a compelling case for BTC as a refuge in times of instability, particularly in a world facing geopolitical tensions, inflation risks, and growing uncertainty around legacy […]
There has been a lot of talk about investors looking to Bitcoin as a safe haven for their investment portfolio. Safe haven markets are very small and hard to get into. Bitcoin may not fit that bill as perfectly as some people think it does. Now that the Brexit doom scenario has happened, there is a lot of uncertainty across the markets. Gold is surging,....
Who said "safe haven"? Bitcoin's unique performance and risk profile make it a different type of investment animal.
Here’s what we are looking at as we head into what could be a volatile week in the bitcoin price market. We’ve had a pretty crazy few weeks in the bitcoin price space, and this has translated to some volatility in the effectiveness of our strategy. We have seen some macro events – the Brexit, politics in the US, etc. – and some micro shocks such as the ethereum hack and the Bitfinex freeze, and each of these has impacted the price of bitcoin in their own way. We were looking for some risk off sentiment towards the end of last week, and in turn, a shift to bitcoin as a risk off (safe haven)....
As Evergrande collapses, China is close to becoming a high-yield borrower. In this debt spiral, bitcoin is the best hedge for investors.