Report Says Retail Investors Going Towards Bitcoin Because of US-China Trade War
Financial experts believes that more retail investors are betting on Bitcoin (BTC) as a hedge against the little economic slowdown because of the ongoing US-CHINA trade war.
eToro, a United Kingdom based multiple Cryptocurrency investment platform and social network released this in a report on 28 August.
Correlation Between Gold and Bitcoin
eToro data reveals a correlation between the uptick of gold and bitcoin on its platform following news announcement regarding the US-China trade war.
Gold has been treated as safe haven assets during period of macro recession or geopolitical instability. eToro data points that the new generation thinking same for Bitcoin and called it digital gold.
EToro UK analyst Simon Peters has analyzed the data and explains:
“Shares similar characteristics to gold in that there will only ever be a finite amount in existence (21 million), it’s decentralised, its price is not affected by inflation and it has the added benefit over gold of lower storage costs.”
Peters further explains that there are several factors that will affect the mass adoption of Bitcoin as hedge in times of economic slowdown, noticing that the crypto market is too volatile as compared to other traditional markets, price manipulation and the risks of crypto assets.
The US-CHINA trade war will affect the whole world economy. Not only the Washington-Beijing showdown, but a host of political risks across the globe — from Hong Kong to the United Kingdom and the Middle East — are putting investors on a knife-edge. A Japan based trading adviser said:
“The talking point is still the U.S. yield curve inversion and whether the U.S. economy heads into a recession […] In short, the atmosphere is not so good.”
As Bitcoinik reported fresh data from Bloomberg shows the correlation of gold and bitcoin price, and how the two assets behaves in the past three months.
