Bitcoin it’s the gold of the internet – how many times have each of us heard this sentence? Is this true though? According to the Federal Reserve in Kansas City, it’s too early to think so.
Fed in Kansas City: too early to call BTC safe haven
IN note published on April 15 The Federal Reserve Bank of Kansas City has stated that Bitcoin is definitely not a safe haven, noting that as an asset it is far more risky than gold.
The central bank branch cited Bloomberg data, which shows that Bitcoin shows a positive correlation with the S&P 500 index during periods of decline. The 10-year treasury bond and gold were at the opposite pole – negative correlation with S&P 500 was observed here. that BTC has not achieved safe harbor status.
Bitcoin behaves more like a risk asset than a safe haven, according to a new bulletin from the Kansas City Fed. That comparing gold, 10Y, and bitcoin is completely normalized is incredible. https://t.co/8Vf8uBi9mU pic.twitter.com/ywSUsYDGOP
– Zack Voell (@zackvoell) April 20, 2020
Although many agree with the Federal Reserve that Bitcoin is not digital gold, others note that this does not mean that cryptocurrency it won’t become a safe haven. Gold has been on the markets for thousands of years, and BTC for a decade.
Chances for kryptowaluty
Note that now the cryptocurrency seems to be returning to the favor of investors. Her course fell dramatically on March 13, but has been recovering for some time. Today for 1 BTC you should pay over USD 7,000, despite the fact that the price has dropped by 2% on a daily basis. Let us remember, however, that the exchange rate mentioned on March 13 fell even to just over USD 3,000.
Today, an increasing number of investors believe that buying BTC during a crisis is not a bad idea. For example, Arthur Hayes, CEO BitMEX, wrote in a blog post that he believes investors should now buy BTC and gold. He referred to the fact that central banks today print money for power, which in the long run will reduce their value. On the other hand, BTC cannot be reprinted in this way.
We will find out which page is right over the next several months. Let us be under no illusions: the crisis is just beginning. And it is before our eyes.
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