Bitcoin has climbed more than 15 percent over this last week, suggesting the currency hasn’t lost its strength or power as some might suggest.
Is Bitcoin a Safe Haven After All?
One of the big sentiments as of late is that bitcoin is being sold off in droves. That people are too worried about the economic conditions they’re facing and are looking to retain as much cash as possible. One of the ways of doing this is by selling all speculative assets to retain the money they need to survive and stay healthy.
But other news sources are reporting something different. Recently, Live Bitcoin News reported that many crypto exchanges and trading platforms are witnessing a surge in new bitcoin investors and trading enthusiasts. Exchanges like Kraken, Paxful and Luno have all said the number of new customers they’ve garnered have expanded heavily over the past week, which may be why bitcoin is suddenly on the rise in terms of price.
For the most part, it looks like bitcoin is, once again, being labeled a “safe haven” by investors and analysts alike. The question of whether bitcoin is a “safe haven” asset has waged for years, and some have even compared it with the likes of gold, though not everyone is a believer. Analysts say the coronavirus has caused several people’s attitudes to change about crypto.
John Iadeluca – founder and CEO of Banz Capital – explained:
The newly updated jobless claims report in the U.S. helped fuel a sharp bitcoin price increase. However, yesterday marked the official start of the second quarter, a common tax incentive for new or added capital in the alternative investments market. The release of the jobless claims [report] also came alongside the report of a near 50 percent increase in citizens receiving benefits, prompting a migration of investment to what could possible be deemed safe-haven assets due to the data suggesting increasing coronavirus economic fears. This can be further supported by the significant rise in gold and commodity futures in the last 48 hours.
This Status Will Cover Over Time
Tim Enneking – managing director of Digital Capital Management – offered similar sentiment. He says people are finally starting to recognize bitcoin as a “safe haven,” though it won’t be deemed fully so until a future date. He comments:
QE1, two, three and infinity took place over years and coincided with the launch of bitcoin… That must devalue a currency – except currency value is relative (exchange rates) and if everyone is debasing, the devaluation will not be felt except versus something like BTC, which has a finite supply, so I would explain the current move up – and I predict it will continue – by attributing it to the realization that BTC will (finally) be a safe-haven – not from temporary economic downturns (it failed that test miserably), but from currency ‘printing presses.’