Is Bitcoin a safe-haven investment or is it not? Regardless of the answer, the king of cryptocurrency is standing strong above eleven thousand dollars ($11,000) mark.
Although Bitcoin and other cryptocurrencies are known as an alternative from global finance. It is widely believed that these are used to avoid the uncertainty of global finance.
Even recently a report from cryptocurrency research company SFOX claimed that Bitcoin is a leading global hedge during the US-China trade war seems to be heating up. Among all this one crypto analyst seems to disagree with this report.
SFOX assimilated data from eight major exchanges and liquidity providers to conclude their research.
The data included trading volume, price analysis and volatility information of Bitcoin before and when the US-China issue started. The results pointed out that people are investing in Bitcoin to avoid the instability surrounding current markets and the globe’s financial situation.
However, this conclusion is based partly upon the assumption that Bitcoin is correlated negatively with the S&P 500 as well as all other leading cryptocurrencies. Contrarily, Bitcoin shows -0.4 correlation with S&P 500 (on a scale of -1 to 1) while it shows a strong positive correlation with Bitcoin.
Furthermore, a market analyst from eToro, Mati Greenspan disagrees with this and has posted a graph that shows no correlation between the US-China issue and Bitcoin investments.
Moreover, crypto skeptic Peter Schiff who believes it to be pure speculation stated that Chinese people are not buying Bitcoin as a hedge. He is of the view that speculators are buying Bitcoin while hoping that the Chinese will buy it as a hedge.