Here's why Bitcoin might be safe from a global stock market crisis
BTC’s lack of integration with traditional finance and its inability to be forcefully sold to cover financial losses mean the price might not ‘collapse’ if there is a global stock market meltdown. One of the reasons behind Bitcoin's (BTC) volatility, the substantial price oscillations that occur regularly, is the discrepancy of its use cases. Some pundits deem it "digital gold," a truly scarce and perfect store of value (SoV). Others consider Bitcoin a technology project or a type of software with a corresponding network.El Salvador's adoption as legal tender will likely evidence the means....
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Being part of the stock market is not as fun right now as it was a few years ago. Every day, a new financial disaster seems to be waiting just around the corner. After the trouble started brewing in China a few months ago, the Japanese stock market is the next one to plunge. The reason for this is simple: government bonds are going negative for the first time. At the same time, Bitcoin is looking more and more appealing as a way to diversify portfolios. Japanese Stock Market Takes A Big Hit. In this day and age, being involved in the financial sector with one’s money doesn’t make for a....
In times of market turmoil, investors generally move their money away from riskier holdings into safe-haven currencies or precious metals such as gold. For Tim Draper, a founding partner of prominent Silicon Valley venture capital fund Draper Fisher Jurvetson, bitcoin could emerge as a safe-haven store of value during this type of market environment as well. Global equity markets have been tumbling in the past few days, only to enjoy a brief respite mid-week then start falling again. China has already taken several measures to stem the bloodbath in their stock market, such as cutting....
As decentralized digital assets, Bitcoin and the crypto market at large has often been regarded as an isolated bubble or safe haven from the traditional stock market. But as an asset class, cryptos have always been fundamentally tied to equities, closely tracing price levels of major indices. This was clearly displayed in the global stock market crash last March, as Bitcoin plummeted nearly 50% as the S&P 500 and NASDAQ index both suffered 30% losses. […]
Yesterday, Bitcoin’s price was around $442 and $447 and could not overcome the level of $450. On Monday, January 11, 2016 the crisis in the global stock markets continued, and trading ended with a negative value. The main reason for the crisis is still China, whose stock market fell by 4%. Considering this, Bitcoin has every reason to rise to $465. However, buyers and sellers have been slow and cautious. The movement of prices below $440 could cause a turn and descent of Bitcoin’s price to the nearest psychological level of $430. In turn, this reduction could lead Bitcoin to test the....
During times of financial crisis, gold prices typically skyrocket as traders move their money to safe-haven assets. In the latest Greek debt fiasco, however, the price of the precious metal has barely moved while bitcoin has surged in the past weeks. There's no doubt that the financial concerns surrounding the Greek debt crisis have started to weigh on equities and other higher-yielding assets all over the globe. What's interesting, though, is that the flight to safety seems to have favored digital currencies rather than the traditional safe-havens. Digital Currencies and Greece. One....