GREY:VYGVQ - Post by User
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Hallfieldon Aug 09, 2019 6:03pm
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Market roundup
Market roundup Hi Brent, The US-China trade war escalated to new highs this week as China let its currency fall under 7 Yuan to the dollar after announcing a ban on all U.S. agriculture imports. The latest move by China has many, including President Trump, accusing China of manipulating the Yuan to an 11-year low to offset the United State’s most recent round of tariffs. The trade showdown Monday dealt a blow to the U.S. economy. The DOW closed down 767 points, the S&P 500 lost 87 points, and the NASDAQ fell 278 points, resulting in the largest one-day sell-off in more than a year. As the stock market sent shivers down the spines of investors, Bitcoin climbed more than 7 percent on Monday, breaking $11K for the first time in nearly a month.
Bitcoin’s negative correlation to the DOW, S&P, and NASDAQ is becoming harder to ignore, and crypto is rightfully gaining a reputation as a “safe haven” investment. A new report from SFOX found that amidst the China-US trade war turmoil this week, Bitcoin showed a stronger negative correlation to the traditional market than Gold. The chart below shows the S&P 500 in comparison to Gold and top cryptocurrencies over the last 30 days. Some experts believe Bitcoin’s latest rally is in large part because Asian investors are flocking to the crypto market as a hedge against economic instability in China.  Bitcoin’s global reach makes it less likely to be negatively affected by political turmoil like the trade wars. It’s also important to acknowledge that Bitcoin can’t be manipulated the way the Yuan allegedly has.
Currency manipulation, the act of raising the price of imports and subsidizing exports to make an economy more internationally competitive, has been done by governments throughout history. Because Bitcoin is a decentralized network and is not back by a government, it would be nearly impossible to manipulate. There’s also a set supply of Bitcoins, making it scarce in the same way a precious metal like Gold is.
Bitcoin has the fundamentals of a “safe haven” investment, but the young currency has yet to live through a true recession. Only time will tell for sure if crypto is negatively correlated to the traditional market. Bitcoin Price Soars As China Softens Stance On Crypto, Devalues Yuan The Bitcoin price soared from $10,506.38 to $11,774.50 over the weekend, an increase of roughly 12%. Most of the price action took place early Monday morning, as the Chinese yuan dropped sharply against the U.S. dollar, trading at 7 yuan per dollar for the first time in more than a decade. Crypto Rally Sparked by Investors Seeking Hedge Against Rising Global Risks, says Bitcoin Bull Tom Lee Bitcoin bull Tom Lee told CNBC on Monday that cryptocurrency is a hedge against global risks, amid the U.S.-China trade conflict and currency war. The founder and head of research at Fundstrat explained on “Fast Money ” that “bitcoin has done something very interesting this year. An Analysis of the Crypto ATM Market The market for crypto ATMs has been growing steadily. Last month crypto ATMs experienced their largest net increase in a single month with 292 installed globally. To date there are 5,353 ATMs across 81 different countries. Why is the US Not Yet a Leader in Crypto Regulation? — Experts Answer Despite being an economic leader, many within the crypto industry argue that the United States in particular has not yet gained a leading position among governments actively working to regulate this new technology. |