Bitcoin has been firmly acting as a risk-on asset over the past several weeks, with its price closely tracking the movements seen by the U.S. stock markets. This has invalidated its status as a safe haven asset and has made the benchmark crypto prone to seeing massive near-term downside.
Although BTC has been moving in tandem with the Dow Jones, S&P 500, and other benchmark indices, one veteran trader and highly respected analyst is now noting that he believes investors should view Bitcoin, Gold, and other precious metals as “catastrophic insurance policies.”
This seems to insinuate that Bitcoin may not benefit from the ongoing economic turmoil seen across the globe unless it morphs into something much worse than a recession.
Bitcoin Shows Signs of Breaking its Coupling with U.S. Stock Market
At the time of writing, Bitcoin is trading over 7% at its current price of $6,400, which marks a notable climb from daily lows of $5,800 that were set yesterday evening when crypto investors reacted negatively to the massive decline in the stock market’s futures. Read More...