Investors flock to safe havens while Bitcoin does not meet expectations
Safe haven systems are growing amid concerns about the spreading corona virus. Meanwhile, Bitcoin collapsed over the weekend as investors begin to question its ability to hedge traditional markets.
Global rush towards “safe havens”
The price of gold rose to over $ 1. 700 as an ounce since investors relocate their capital worldwide to safe alternatives. The precious metal reached its highest level in more than seven years and shows a strong performance during the corona virus, which triggered fear in all major economies. Michael McCarthy, the main market strategist at CMC Markets, said:
“There is currently a clear rush for safe investments, and gold is a major beneficiary. Markets are concerned that we could see a uglier situation before it gets better, which of course is good news for gold.
The state of unrest on the global financial markets prompted Goldman Sachs Group Inc. to 12 – Monthly forecast for gold around 200 raise dollars. The bank confirmed that the gold price in the event of a spillover of the corona virus to 1. 800 dollars per ounce could rise.
Bitcoin does not meet expectations
The price of gold has risen by up to 8.2 percent since the beginning of the month. In the meantime, Bitcoin, which is considered by many to be a “digital gold safe haven”, plunged from 12 percent. The flagship of the cryptocurrency moved below the 8th for the first time since January 000 – Dollar mark. BTC fell to a low of $ 7. 730 dollars.
The fact that Bitcoin could not recover under the ideal financial conditions is a clear sign that a steep decline is imminent, according to Bitcoin critic Peter Schiff.
Nobel laureate Nouriel Roubini suspected in this context that the poor performance of the BTC during this global epidemic nullifies the idea that bitcoin can serve as a way out in times of financial turmoil:
“Bitcoin was down 8% on the last day, much more than global stocks. Another proof that Bitcoin is NOT a good hedge against risky investments in risky phases. It actually falls more than risky assets during the risk-off phase. BTC is a shitty shit hedge in risk-off cases. ”
Since eight new countries, including Bulgaria, Costa Rica, the Faroe Islands, French Guiana, the Maldives, Malta, Martinique and the Republic of Moldova, have reported their first cases of coronaviruses, investors are “more extreme Anxiety”.
Proof of text: cryptoslate
Top broker for buying and trading cryptocurrencies
Cryptocurrencies are a very volatile, unregulated investment product. Your capital is at risk.