Stocks are getting affected globally due to the ongoing events that have left the traders in shock. On March 10, among the crypto traders all had mutual understanding and agreement as they all waited for possibly the worst scenario for Bitcoin(BTC), panic had already been created worldwide with Bitcoin registering its low.
This was in particular the worst day for the economy since the 2008 financial crisis. Bitcoin (BTC) itself is not a limit to every event taking place in the world but eventually can protect its users from governments, central banks, fiat money printing, and vice versa.
Trade is affected the most globally and has taken its toll in the United States also with the United States bond yields curve dropping below 1%. It all started on Monday with the stock market and currency market registering losses and soon they were joined by United States government bond yields registering below 1%. Coronavirus panic has affected all forms of trades globally with oil price war settled to spark.
Traders from all over the world are curious about what more worse can happen and when things will become better. It’s a big concern among the traders.
Simultaneously, Bitcoin shed around 15% medium-term, unpredictability which at press time had in any case subsided. Noting authentic conduct, Hunter Horsely, CEO of BitWise, said that BTC was performing far superior to before versus the S&P 500 specifically.
S&P is -7.6% today. Based on historical volatility, a -7.6% move in S&P is == to -41% in BTC
he wrote on Twitter.
Yet in the last 24 hrs BTC is only -5%. And only -0.5% since midnight today. That’s uncorrelated.
Trading of Bitcoin become a real concern
AngelList CEO Naval Ravikant in the meantime proposed that financial specialists zoom out from late value changes. Bitcoin(BTC) has customarily preferred financial specialists with a low time inclination — the individuals who comprehend that setting aside in sound cash ensures more riches later on as opposed to spending and getting.
At the moment, Bitcoin is not a general hedge against every black swan and still behaves like a ‘risk on” trade,
he responded to criticism of the cryptocurrency’s performance.
But long term, Bitcoin is a hedge against central banks printing money, which is inevitable as a reaction to the virus.