updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131The Bitcoin ETF launch attracted strong inflows from retail and institutional players over the last month. Ark Invest’s Cathie Wood believes that Bitcoin will replace Gold as a safe-haven asset sooner than expected.
In a recent YouTube update, Cathie Wood of ArkInvest delves into her perspective on Bitcoin’s current behavior, emphasizing its role as a risk-off asset and a perceived “flight to quality” amid economic uncertainties.
Wood notes a pattern observed during last year’s regional bank crisis in March when the BTC price experienced a notable 40% surge while the regional bank index, represented by KRE, was facing challenges. Drawing parallels to the present, Wood points out that Bitcoin is once again gaining traction as the regional bank index exhibits signs of volatility.
She suggests that the notion of Bitcoin acting as a “flight to quality” is becoming more evident. On the other hand, global markets like China are also facing strong economic uncertainties with more investors now seeking exposure to Bitcoin.
Exploring the recent dip in BTC price after the introduction of 11 ETFs, Wood attributes the decline to anticipatory buying leading up to the ETFs’ release and a subsequent “sell-on-the-news” phenomenon, often driven by opportunistic trading strategies.
Wood further supports her perspective by sharing a chart depicting Bitcoin’s price in comparison to gold, showcasing a robust, long-term uptrend. This trend, according to Wood, reflects Bitcoin’s ongoing process of potentially replacing gold to some extent in the investment landscape.
As Bitcoin continues to navigate market dynamics and economic uncertainties, Wood’s insights provide valuable perspectives on the cryptocurrency’s evolving role in the broader financial landscape. Stay tuned for further developments and analyses from ArkInvest. Wood said:
“This chart just shows you that even relative to gold, Bitcoin has been rising. There’s now a substitution into Bitcoin and we think that is going to continue now that there is a much easier way, less friction-filled way to access Bitcoin.”
Wall Street currently is grappling with yet another regional banking crisis situation while many big companies have already announced massive layoffs for this year in 2024. Bloomberg Intelligence strategist Mike McGlone believes that the US could be heading for a recession in the later part of the year.
While Bitcoin supporters continue to believe that BTC could be a strong hedge against the crashing bond and stock market, McGlone thinks otherwise. Bloomberg’s senior commodity strategist, Mike McGlone, anticipates that Bitcoin is poised for a less favorable performance compared to the stock market on a risk-adjusted basis in 2024.
Contrary to common market expectations, McGlone suggests that the assumption of potential interest rate cuts by the United States Federal Reserve, typically beneficial for risk-on assets like Bitcoin, might not materialize as anticipated. As a result, he suggests that gold could outpace Bitcoin in terms of performance during the year.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Amid mounting debt-limit default risks, US investors have turned to Bitcoin as ‘digital gold’ to better hedge their savings.
Amid rising debt-limit default risks, Bitcoin (BTC) is the preferred safe-haven asset compared to other established global fiat currencies. A recent report stated that investors have turned to BTC to hedge their investments, compared to the US dollar, Japanese yen, or Swiss franc-yielding assets. In addition, Bitcoin’s growing popularity as a veritable option rivals that of gold now.
The likelihood of a US debt default is at its highest point in recent times and threatens to upend global markets. The ongoing US banking crisis has done little to assuage fears, with more investors repurposing their assets toward crypto. Some analysts believe BTC’s rising popularity could see the popular crypto revisiting its record high in early 2024. With institutional investors braced to invest in Bitcoin in the second half of this year, the asset is already experiencing a diminishing correlation with stocks. Conversely, Bitcoin’s correlation with gold is on the rise, being 50% in early April compared with the 20% BTC-stock 20% correlation.
Gold remains a favorite among investors seeking protection amid the risk of debt-limit default. A recent Bloomberg Markets Live Pulse survey revealed over 50% of finance professionals would buy gold on a government loan default. However, many American investors were still open to buying US Treasuries if the government failed to honor its obligations. This development is interesting because the risk of defaulting on Treasuries is high.
Political and financial stakeholders have warned about dire implications if the US debt ceiling situation spirals out of control. For instance, US President Joe Biden suggested that the “whole world [could be] in trouble”. Meanwhile, JPMorgan (NYSE: JPM) CEO Jamie Dimon said the situation could be “potentially catastrophic”. The International Monetary Fund was just as grim in its assessment of a full-blown debt limit default case in the US, foreboding “very serious repercussions”.
Despite the US’ long-vaunted status as an economic superpower, many think the country should pay close attention to its erring debt profile. In a survey, respondents compared the current debt situation with the debilitating debt-limit crisis from 2011. According to 60% of MLIV Pulse participants, there has been an exponential increase in insurance costs from non-payment since 2011. As Invesco’s head of fixed income, alternatives, and ETF strategies, Jason Bloom, put it:
“The risk is higher than before, given the polarization of the electorate and the Congress. The way both sides are so dug in means there is the risk they don’t get their act together in time.”
Notwithstanding, surveyed respondents still believe that the actual possibility of default remains relatively slim. Instead, an overwhelming majority of MLIV surveyed investors anticipate a rally in 10-year Treasuries in the most extreme case.
Some investors also believe that the US debt-ceiling blues has impacted the dollar. For instance, 41% say the greenback could lose its primary global reserve status if the US defaults.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
The rise in gold prices has been attributed to mounting speculation about the United States Federal Reserve’s future policy following the release of jobs data.
The total market capitalization of tokenized gold has surpassed $1 billion. CoinGecko data places it at $1.02 billion, up 2.3% over the past 24 hours, with a trading volume of $35,508,696 over the same period.
The largest gainers are PAX Gold and Tether Gold with gains of 2.7% and 1.9% respectively. Both are currently trading over $2,000, with PAX Gold at $2,036 and Tether Gold at $2,026. PAX Gold’s market cap stands at almost $523 million, as Tether Gold trails with close to $499 million. Perth Mint Gold Token comes in third place with a market cap of $2.46 million.
This is not the first time tokenized gold’s market cap has topped the $1 billion mark. Last year, the tokens’ market was well above $1 billion for a portion of last year before falling off in August.
The Block’s CEO Larry Cermak comments:
“$1 billion is still relatively little. The likeliest reason is that some crypto whales prefer to hedge their crypto exposure with gold, and use these tokens instead of storing gold bars in their safes.”
This change comes as investors find a safe-haven asset in gold amid the looming banking crisis. The general digital asset market has benefited from increased investor attention, with the top currency, Bitcoin currently trading above $28,500 according to CoinMarketCap data.
“The simplicity of crypto as digital bearer assets solves for the immediate counter-party risks that bank customers are dealing with, but customers also require stability of value,” Bernstein’s Gautam Chhugani said.
The price increase comes as the price of the underlying asset, gold, surges to a 13-month high of over $2,025 per ounce as the prices of industrial metals such as copper and iron ore continue to drop. The last time the precious metal reached such heights was in February 2022. Gold closed Tuesday at $2,020 while silver closed at $25 per ounce, up a dollar over 24 hours.
The rise in gold prices has been attributed to mounting speculation about the United States Federal Reserve’s future policy following the release of jobs data. Job openings in February fell to a nearly two-year low of 1.7 job openings per person, down from 1.9 in January. A lower number is indicative of the Fed’s success in managing inflation and suggests that the central bank might stop hiking rates. While this data has had a positive effect on gold, the opposite is true for the US dollar.
Mercy Mutanya is a Tech enthusiast, Digital Marketer, Writer and IT Business Management Student.
She enjoys reading, writing, doing crosswords and binge-watching her favourite TV series.
Bitcoin Cash price drifted sideways on Monday even as investors started seeing cryptocurrencies as safe havens amid the ongoing crisis in the banking sector. The BCH price was trading at $136, which was the highest level since February 23rd.
A key observation is that the close correlation between Bitcoin and Bitcoin Cash has ended. While BCH price is trading at the highest point since February, Bitcoin price has soared to $28,000, the highest point since July last year. It has almost doubled from its lowest level in 2022, making it one of the best-performing assets this year.
Bitcoin has been in a strong trend as some investors increase their bets that the asset will do well as banks continue collapsing. Silicon Valley Bank, a storied American bank, collapsed after announcing an emergency funding round. It was followed by the collapse of Signature Bank, a company that focused on technology and crypto customers.
The biggest bank to fail was Credit Suisse, the second-biggest Swiss bank in the world. The firm was acquired by UBS in a $3.3 billion all-stock deal as the amount of outflows increased to over $10 billion per day. Without the rescue, Swiss regulators would have forced to shut it or nationalize it.
It is unclear whether more banks will fail in the near term. However, a study published by researchers from the University of Southern California, Northwestern University, and Stanford University warned that 190 banks could fail because of their exposure to long-dated bonds.
If this view is correct, then, it will be likely that more people will shift their cash to uncorrelated assets like gold and Bitcoin. BHC, with its lower liquidity and interest, will likely lag Bitcoin in the near term.
The BCH crypto price has been in a slow bullish trend in the past few days. In this period, it has managed to move above the key level at a 50-day moving average. It is also struggling to move above the year-to-date high of $153.92. The MACD has moved above the neutral point.
Therefore, there is a possibility that the Bitcoin Cash price will continue rising as buyers target the next key resistance point at $153. A move below the 50-day moving average of $125 will invalidate the bullish view.
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