Recently, Live Bitcoin News reported that while crypto wasn’t doing so well as of late, stocks, bonds and oil had also taken turns for the worse.
Bitcoin Analysts Tell Wall Street to Calm Down
We’ve reached something of a conundrum in that crypto enthusiasts have dealt with hardcore volatility and price swings in the past and are less likely to “freak out” when something big happens. Wall Street, however, still shows signs of concern whenever the markets don’t do well.
Today, bitcoin and crypto enthusiasts are practically laughing at Wall Street and stock traders, claiming they don’t’ know what volatility is and that they should take a chill pill.
Bitcoin has gone up and down since it first emerged on the financial scene. There doesn’t seem to be a way of avoiding price swings, as they always permeate the industry’s walls even when they’re totally unexpected. One such example occurred at the end of 2018 when the bitcoin price – having spent much of the summer that year traveling through the low to mid-$6,000 range – suddenly dropped to around $3,500.
Many analysts blame the bitcoin cash hard fork that occurred in November of that year. The event brought about a new cryptocurrency called bitcoin SV (BSV), which has been at the center of controversy ever since. The asset has pitted several industry leaders – particularly Roger Ver and Craig Wright – against each other.
Still, however, the crypto world is not at the bottom of its proverbial barrel, with BTC still trading for nearly $1,000 higher than when it began 2020. On January 2, the world’s number one cryptocurrency by market cap slid down to approximately $6,900 per unit. At the time of writing, however, that number has expanded to just shy of $7,900, suggesting that bitcoin and its altcoin cousins are still in a solid place.
While stocks are once again beginning to show signs of life, Wall Street is still in an uproar. Several crypto analysts say that it’s time to calm down, as during moments like these – when a global crisis (the coronavirus) is hitting – all assets are widely speculative, and many people are simply turning to cold, hard cash to ensure their survival.
All Assets Look Scary, Right Now
This is the sentiment of individuals like Connor Abendschein, a research analyst for Digital Assets Data. In a statement, he explains:
“Few assets are safe when a ‘black swan’ event such as the coronavirus takes hold of the markets on a global scale. Bitcoin may find its footing and shine further down the road during this financial crisis.”
Konstantin Plavnik – COO of Russian crypto derivatives platform Xena – agrees, stating that while bitcoin has become far more effective over the past few years, it is still very much a “speculative” asset, and that most individuals are likely to turn to cash over anything else during times of trouble.