{"id":384889,"date":"2019-06-04T13:21:53","date_gmt":"2019-06-04T13:21:53","guid":{"rendered":"https:\/\/wncen.com\/?p=384889"},"modified":"2024-06-11T13:43:47","modified_gmt":"2024-06-11T13:43:47","slug":"analysts-stock-up-on-fiat-for-incoming-recession-not-bitcoin","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/analysts-stock-up-on-fiat-for-incoming-recession-not-bitcoin\/","title":{"rendered":"Analysts: Stock Up On Fiat For Incoming Recession, Not Bitcoin"},"content":{"rendered":"

As the US-China trade war shows no sign of abating, talk of a global economic slow down is rife. And while some analysts attribute Bitcoin’s recent resurgence to uncertainty within legacy markets, there are those who disagree with that sentiment. Indeed, critics say Bitcoin makes a poor investment, even in times of economic uncertainty.<\/p>\n

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The bitcoin price is up 113 percent year-to-date against the U.S. dollar (source: coinmarketcap.com)<\/figcaption><\/figure>\n

Some Say Bitcoin Rules In A Crisis<\/h3>\n

Although today has seen a 6% fall in Bitcoin price, that doesn’t detract from its stellar performance of late. Taking into account today’s market dump, Bitcoin is still up 112% from the start of the year.<\/p>\n

Since the 1st of January, Bitcoin experienced months of sideways action until the 1st of April. Which saw this year’s first parabolic jump. Some attributed this to a fake news<\/a> event on the SEC approving Bitcoin ETFs.<\/p>\n

https:\/\/twitter.com\/ChartsCrypto\/status\/27528192<\/p>\n

But it was until the intensification of US-China trade talks, over a month later, that Bitcoin’s price took off. Speaking to the South China Morning Post<\/a>, Garrick Hileman, Head of Research at Blockchain.com, said:<\/p>\n

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“We can\u2019t be 100 per cent certain that bitcoin\u2019s recent price increase is being driven by concerns over the trade tensions and declines in the RMB\u2019s exchange rate as correlation does not necessarily equal causation.”<\/p>\n<\/blockquote>\n

And while Hileman is correct in citing the primary tenet in statistics, that hasn’t stopped some from associating the two events. Hileman went on to say:<\/p>\n

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\u201cBut this is not the first time we\u2019ve seen significant increases in the value of bitcoin taking place alongside yuan concerns. We also continue to see growing recognition of bitcoin as \u2018digital gold\u2019 and it being used as a hedge against various macroeconomic risks.\u201d<\/p>\n<\/div>\n<\/blockquote>\n

This is a view echoed by David Cheetham, the Chief Market Analyst at XTB. Speaking to Yahoo Finance<\/a>, he believes Chinese investors are buying Bitcoin to protect their wealth during these times of uncertainty.<\/p>\n

Others Say Bitcoin Is A Poor Choice<\/h3>\n

Despite these assertions, some remain skeptical of Bitcoin as a hedge against the system. Mati Greenspan, Analyst at eToro, doesn’t see Bitcoin as a safe haven. Quoting John Authers’<\/a> comments on the volatile nature of cryptocurrency, Greenspan agrees that Bitcoin represents a poor investment choice.<\/p>\n

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Spot on as always @johnauthers<\/a> from Bloomberg @business<\/a>.<\/p>\n

Bitcoin is not a safe haven. Unless you consider the entire fiat system unstable, which the current global market clearly does not. pic.twitter.com\/8iqVbnvdWn<\/a><\/p>\n

— Mati (@MatiGreenspan) June 4, 2019<\/a><\/p><\/blockquote>\n