Cryptocurrency

Bitcoin resists the economic crisis by coronaviruses and until it is strengthened, according to the analysis

Key facts:

Bitcoin has been able to obtain significant gains and overcome the stock indices.While the stock market shows affected by the virus, bitcoin is reaching its maturity.Bloomberg recently released a report, which presents data on the performance of bitcoin (BTC) in comparison with the gold, before the current economic crisis derived from the pandemic coronavirus (COVID-19).The document emphasizes that, during the global health emergency, the criptomoneda has not followed the same trend of the traditional markets, in which there has been a collapse. On the contrary, the analysis found evidence that the criptoactivo is strengthened.The report, entitled “Leap to the maturity of Bitcoin”, published this week, highlighted by what BTC stands out from the rest of the cryptocurrencies. In the first place, because it is an asset that was designed to overcome a financial crisis, by which it may be assumed that it possesses qualities that allow it to stay afloat in moments like that the world is living in the present.For this reason, the paper examines the criptomoneda pioneer, from its birth after the global financial meltdown of 2008, as well as their history and performance over the years.Given that the collapse generated by the coronavirus is the first major global economic crisis that faces bitcoin, the report of Bloomberg, also focuses extensively on the effects that the pandemic has had on the asset. He explains that, while the stock market traditional has been seriously affected by the virus, also hopes that bitcoin and gold will become great winners in spite of the crisis.The cryptocurrencies and the gold assets are the best performing in the middle of a crisis. Source: WorldSpectrum/ Pixabay.comBitcoin has faced difficult times. The asset fell to levels almost to historic to mid-march, and its value is negotiated in the lows of the bear market 2018 by approximately $ 3.800. However, it has been able to recover and now trades comfortably above the threshold of USD 6,500. But, the report also highlights the fact that BTC increased by approximately 40% in the last 12 months, compared with a 15% drop in the S&P 500.It is true that bitcoin now seems to have reached his ceiling, at least for the moment, as after the collapse of march, has been maintained above the mark of USD 7,000 for a long time. Also, it has been able to obtain significant gains and overcome the stock indices. In fact, the analysis, signed by Mike mcglone enjoy the festivities, consider BTC a “bull in sabbath” that benefit from the current crisis of the coronavirus.

Bitcoin strengthens

The analyst of Bloomberg explains that the rate of investment by Standard & Poor’s 500 (S&P 500) puts bitcoin among the assets that produce large benefits at a cost of high risk, even five times higher. However, the market of the cryptocurrencies only contracted 5% in 2020 compared to the collapse of almost 22% of the stock indices.The analyst also found evidence that bitcoin becomes an asset and less risky. “The criptomoneda primogenia it is still susceptible to the tide of the stock market in retreat, but it is more a condition divergent. Bitcoin is still close to 9% in 2020 and about their level of support of $ 8,000, although a correlation of 20% S&P 500,” the report says.The document adds that bitcoin is in a process of transition similar to the gold, and suggests that strengthens the narrative that it is digital gold, as it has been called, since it is immune to the negative impact that is also receiving the traditional market, which is reacting in a different way. Bloomberg also shows in a graph the correlation that exists between the main criptomoneda and the gold has reached a historical maximum.The chart from Bloomberg shows that despite the crisis for the coronavirus, the gold and bitcoin have a solid foundation to build momentum, after reaching a recovery in prices of 40% and 80% respectively. Source: Bloomberg Crypto Outlook.The document of Bloomberg argues that bitcoin is now reaching its maturity and added that the launch of future of bitcoin helped to tame the notorious volatility of the criptomoneda, which considers as a sign that it is maturing; leaving a ground that has been rated investment purely speculative, to become a stable investment option.On the other hand, mcglone enjoy the festivities expected Bitcoin to surpass Ethereum, XRP, and the market for altcoins in general due in part to the coronavirus. On this, argues that “Covid-19 distinguishes Bitcoin from the rest of the criptos”.

The macroeconomic effects of the coronavirus accelerate the process of Bitcoin of earning value in relation to other criptos. The greater part of the increase in speculative in the Bloomberg Galaxy Crypto Index (BGCI) from the beginning of 2020 has dissipated, and in a year, bitcoin has risen by nearly 40% until the 2nd of April, compared to a 13% decrease in the BGCI.Mike Mcglone Enjoy The Festivities. Market analyst at Bloomberg.

It is noteworthy that the BGCI is an index of reference designed to measure the performance of trading in dollars on the market of the cryptocurrencies.Bloomberg also expects that the projects of digital assets private, as a Pound of Facebook, keep fighting to get the approval of regulators. Mcglone enjoy the festivities is convinced that the banking regulators are too skeptical about the reliability of the assets created out of the commercial banking system.The entrepreneur Robert Kiyosaki agrees with the proposals of the report of Blomberg. Points out that he sees bitcoin as gold and silver, as “insurance” against the policies of bodies that it considers corrupt. As what has been reported Breaking News, Kiyosaki has repeatedly criticised the policy of printing of new dollars from the Federal Reserve.

About the author

Caroline W.

Caroline is passionate about learning languages, cultures and the Internet. She has years of experience working at international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2018, she joined CurrencyMarket24 as a writer.

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