The last few weeks periodically raise the question of the stability of Bitcoin and maintaining its asset-asylum status. Especially, this topic sounded sharply after a sharp drop of the price of Bitcoin below $ 8,000. The research company Bloqport urges not to succumb to the general decadent mood because Bitcoin continues to be a safe haven asset.
Uncertainty and panic around the fall of Bitcoin: what will happen next?
Bitcoin’s fluctuations in the past week have been a powerful blow to its reputation. Even some leading traders have expressed doubts about the stability and reliability of the most popular digital currency. There is a chance that the economic downturn will be aggravated, therefore, how Bitcoin will behave under these conditions remains a mystery.
Last week, experts were excited about the volatility of the cryptocurrency, including Bitcoin. The fluctuations of the seemingly most stable digital currency became the basis for the formation that Bitcoin can be considered a risky asset. Investors are not sure that Bitcoin can withstand the pressure of the market.
Bloqport tried to debunk the negative sentiment associated with the fall of Bitcoin. On Twitter, the agency published a review in which experts drew a parallel between the behavior of Bitcoin and gold in 2008 when the world was seized by the economic crisis. During this difficult period, gold fell in price by 30% and fell from $ 1,000 to $ 700. The agency notes that during the economic crisis, gold did not act as a safe haven asset.
“After the fall, gold only began to grow in 2009 and reached a level of $ 1,200. Now it is important to observe the behavior of Bitcoin after the recession, and not during the crisis. There is every chance that the rate of this asset will grow. ”
The future will put everything in its place
Bloqport also made an interesting suggestion about the future behavior of Bitcoin. The company’s experts emphasize that the demand for safe haven assets increases during the peak of the economic crisis. Bloqport recalls that gold after the collapse began to grow in 2009 in the active phase of the crisis. The same situation can be simulated for Bitcoin: the price of BTC will skyrocket after the crisis due to coronavirus. Thus, investors can already reduce the degree of panic and expect positive changes.
Volatility is a completely natural behavior for Bitcoin. There is nothing new and unpredictable. Bitcoin’s regular price fluctuation is one of the reasons investors refuse to include digital currency in their portfolio. Nevertheless, Bikini has proven its viability and successfully continues to do so.
The economic crisis as a test of bitcoin for viability
Market pressure, global economic collapse, current unpredictability is an excellent test of Bitcoin for stability. In the past, the most popular digital asset has already shown its viability in difficult market conditions. Now there is an opportunity to follow this path.
Perhaps this economic crisis is a chance for Bitcoin to show that it deserves the status of “digital gold”. If in the current difficult conditions Bitcoin shows that it can be a safe haven asset, its value and demand will grow significantly. Now a crucial moment has come for Bitcoin, which will determine its fate in the future.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.