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Bitcoin has not yet managed to stand out ...

Bitcoin has not yet managed to stand out amid the crisis – Bloomberg
CONTENT

  • Bitcoin, so far, has failed to show its best qualities despite the right conditions.

  • During the collapse of markets, cryptocurrency almost did not differ in price indicators from traditional assets.

  • Some think it’s still ahead.

International consortium of news organizations developing transparency standards.

Cryptocurrency has not yet been able to show its best qualities amid financial collapse.

Bitcoin has not yet managed to stand out ...

Bitcoin has failed to take advantage of the ‘perfect storm’ following the coronavirus crisis.

At least that’s the opinion of Joe Weisental, executive news editor for Bloomberg Digital..

Weisental believes that despite the volatility unusual for the traditional financial market, the cryptocurrency was still unable to take advantage of the situation and reach new heights..

Bitcoin, in fact, continues to create a general downward trend of all-time highs, Weisental notes..

“This negates the argument that the economic crisis is creating opportunities for Bitcoin,” he writes..

Bitcoin has indeed shown strong correlation with traditional markets over the past few months.

After the vast majority of the global financial market collapsed on March 12, Bitcoin was no exception and went into a protracted peak..

At its peak, the bitcoin price crashed to $ 4,100. However, later, when the market recovered, bitcoin also recovered..

“This undermines the argument that bitcoin has good properties for portfolio diversification,” Weisental emphasizes..

Bitcoin has not yet managed to stand out ...

Inflation will save everyone

In the cryptocurrency community, one of the main arguments for the uniqueness of Bitcoin is the programmed inflation rate..

Limiting the emission of bitcoin is often opposed to fiat currencies, which have a high level of inflation, and sometimes even suffer from hyperinflation..

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Recall that every four years, the emission of bitcoin is halved, reducing along with it the reward to miners for the mined block..

At the time of this writing, the reward for mining a block on the Bitcoin blockchain network is 6.25 BTC.

Don’t lose hope

However, the popular trader and analyst Crypto Michaël has a radically different opinion..

In a recent exclusive interview with BeInCrypto, a trader stated that in a crisis environment, only two asset classes have the highest chances of success – cryptocurrencies and commodities..

“The world economy is on the edge of an abyss. What is about to begin to happen will literally repeat the events of the “Selling Short” movie, only on an even larger scale, ”the trader said..

At JPMorgan Chase, a major financial conglomerate & Co believes that bitcoin was still able to successfully cope with its first ever “stress test”.

Bitcoin has not yet managed to stand out ...

According to the strategists of the American bank Joshua Younger and Nikolaos Panigirtzoglu, the cryptocurrency coped well with the March madness, thereby confirming its survivability in the long term..

At the time of this writing, the price of BTC / USD is $ 9471.

What do you think? Did Bitcoin really fail to show its best during the market crash? Share your thoughts with us in the comments and join the discussion in our Telegram channel.

Disclaimer

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