Bitcoin Falls Over High Speculation on Cryptoassets
Bitcoin, a highly volatile digital asset has been considered by a number of investors analysts as not having a safe-haven credential. The largest digital asset now below $55,000 as total market cap slides further.
In recent weeks we’ve seen that, in times of real uncertainty, bitcoin has not done well as an inflation hedge or a safe haven asset, Craig Erlam, Senior Market Analyst, OANDA said in a note.
There’s no doubt it’s a fascinating tradable instrument and a highly speculative one, but it’s quite clear now that it’s a risk asset and nothing more.
Not at the moment anyway. Who knows what the future holds. It’s taking a real beating, off around 8% and looking vulnerable. Key support around $55,500 has fallen which now draw attention will back to $50,000.
I’m sure soon enough the eternal crypto bulls will pile back in and smell a bargain but as we’ve seen so often in the past, bitcoin is capable of enormous gains and eye-watering corrections.
If this new variant triggers major risk aversion in the markets, it could come under serious pressure. Unless of course, the inflation narrative catches again.
No sign of it yet but, as ever with crypto, it has an incredible ability to find the bullish case in anything. Maybe this will be next.
In times like this, we get a true sense of what investors consider to be real, reliable safe-havens.
And bitcoin is off 8% which has delivered a fatal blow to its safe-haven credentials, putting an end to another crypto myth that has surfaced over the years despite there being zero evidence to back it up.
Maybe one day investors will have a different opinion but right now, when their cash is at stake, they’re sticking with safe-haven assets with a track record, as they should.
Gold jumps on safe-haven appeal. Times like this are when gold shines and we’re seeing investors flock back to an old reliable friend.
It has pulled a little off its highs after hitting $1,815 earlier in the session but it remains above $1,800 at the time of writing. It’s an interesting one for gold and bonds, as the situation now is very different from last year. # Bitcoin Falls Over High Speculation on Cryptoassets
Read Also: Top Cryptoassets with Biggest Market Capitalisation Growth
