{"id":412518,"date":"2020-01-28T12:00:51","date_gmt":"2020-01-28T12:00:51","guid":{"rendered":"https:\/\/wncen.com\/?p=412518"},"modified":"2024-06-11T13:41:08","modified_gmt":"2024-06-11T13:41:08","slug":"bitcoin-eclipses-9100-and-data-shows-institutions-are-only-just-getting-started","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-eclipses-9100-and-data-shows-institutions-are-only-just-getting-started\/","title":{"rendered":"Bitcoin Eclipses $9,100, And Data Shows Institutions Are Only Just Getting Started"},"content":{"rendered":"

Bitcoin was one of the few assets heading higher this week as fears about the Coronavirus outbreak<\/a> led a steep fall in global markets.<\/p>\n

The benchmark cryptocurrency on Tuesday was up by 1.91 percent<\/a> to trade near $9,066.21 per token in spot markets. At the same time, CME Futures linked to bitcoin were also trading 0.5 percent higher at $9,040. The moves uphill suggested that speculators were increasing their exposure on the cryptocurrency.<\/p>\n

That was further evident in the weekly performance of GBTC<\/a>, an institutional-grade trust tied to bitcoin. The OTC stock jumped 3.59 percent in the last two days, further suggesting an influx of large capital from accredited investors. GBTC last year had raked in about $600 million worth of investments.<\/p>\n

\"grayscale<\/a>
GBTC on a path to recovery as investors’ appetite for risk-off mounts against global crisis | Source: TradingView.com, Grayscale<\/figcaption><\/figure>\n

Opportunity in Crisis<\/h2>\n

Bitcoin and bitcoin-related derivatives typically do well in times of global macroeconomic and geopolitical crises. And it appears the world is under one right now.<\/p>\n

Global markets remain under pressure with the rising death reports in China due to Coronavirus. European shares, for instance, recorded their worst daily performance in four months this Monday. Asian stocks, too, got caught up in the selling frenzy.<\/p>\n

In a statement published last week, China’s securities regulator suggested traders to objectively analyze the Coronavirus outbreak<\/a>. The office indicated that a mass hysteria about the so-called epidemic could be falsely negating stocks’ values.<\/p>\n

On the other hand, economists at Goldman Sachs said that investors could remain outside risk-on markets unless the Coronavirus situation comes to a halt.<\/p>\n

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The sentiment leaves investors with a choice to migrate some part of their capital to safe-havens. Gold, US Treasuries, Japanese Yen are all their go-to assets as the crisis looms over.<\/p>\n

Bitcoin, a relatively new and unfound haven, is also behaving like a hedging asset against the fears of the Coronavirus outbreak.<\/p>\n

In the simplest chronology, investors \u2013 particularly in mainland China \u2013 could be pumping bitcoin especially when the markets were closed due to the Lunar year.\u00a0But today, China announced that it is suspending trading<\/a> on two of its biggest stock market exchanges until February 3.<\/p>\n

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BREAKING: China Frantically Shuts Down Stock Market to Prevent #Coronavirus<\/a> Selloff!<\/p>\n

China was too late, when markets reopen fear will be widespread having already suffered a huge dump<\/p>\n

USA Markets also take a huge hit!#bitcoin<\/a> however is immune to corona virus! pic.twitter.com\/rUQWb1wHZa<\/a><\/p>\n

— That Martini Guy (@MartiniGuyYT) January 28, 2020<\/a><\/p><\/blockquote>\n