One integral facet of Bitcoin's value that investors have long pointed to is its potential status as a "Safe haven" asset.
This decline may have stemmed from a knee-jerk reaction from investors, but the cryptocurrency's ultimate test as a potential safe haven may be yet to come.
A few charts indicate that immense economic turbulence is imminent, which could put Bitcoin to the test.
Because this weakness could ultimately prove to be a headwind for the stock market, it may also put Bitcoin's potential status as a safe haven asset to the test.
All the while, the U.S. stock indices have been flashing continued signs of strength, creating a tailwind that has helped propel assets like gold and Bitcoin higher.
Looming economic turbulence could be the ultimate test for Bitcoin.
Bitcoin has indeed been trading in lockstep with the stock market over the past several weeks and months, but this doesn't mean that this will always be the case.
Gold - for instance - has also been flashing signs of being treated by investors as a firm "Risk-on" asset over the past few weeks.
If the economy enters a prolonged downturn - as the factors mentioned above seem to suggest - then investors may begin treating assets like gold and Bitcoin more like safe havens and less like speculative trading instruments.
Unless there is a shift in this trend, the coming few months should be revealing for Bitcoin's long-term position within the global markets.
These charts suggest Bitcoin's "safe-haven" status is about to see its ultimate test
Published on Jul 12, 2020
by Cryptoslate | Published on Coinage
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