Bitcoin has climbed more than 15 percent over this last week, suggesting the currency hasnt lost its strength or power as some might suggest.
Is Bitcoin a Safe Haven After All?
One of the big sentiments as of late is that bitcoin is being sold off in droves. That people are too worried about the economic conditions theyre facing and are looking to retain as much cash as possible. One of the ways of doing this is by selling all speculative assets to retain the money they need to survive and stay healthy.
But other news sources are reporting something different. Recently, Live Bitcoin News reported that many crypto exchanges and trading platforms are witnessing a surge in new bitcoin investors and trading enthusiasts. Exchanges like Kraken, Paxful and Luno have all said the number of new customers theyve garnered have expanded heavily over the past week, which may be why bitcoin is suddenly on the rise in terms of price.
For the most part, it looks like bitcoin is, once again, being labeled a safe haven by investors and analysts alike. The question of whether bitcoin is a safe haven asset has waged for years, and some have even compared it with the likes of gold, though not everyone is a believer. Analysts say the coronavirus has caused several peoples attitudes to change about crypto.
John Iadeluca – founder and CEO of Banz Capital – explained:
The newly updated jobless claims report in the U.S. helped fuel a sharp bitcoin price increase. However, yesterday marked the official start of the second quarter, a common tax incentive for new or added capital in the alternative investments market. The release of the jobless claims [report] also came alongside the report of a near 50 percent increase in citizens receiving benefits, prompting a migration of investment to what could possible be deemed safe-haven assets due to the data suggesting increasing coronavirus economic fears. This can be further supported by the significant ris ...