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- Most of the people in the crypto industry have waited for a financial crisis similar to that which happened in 2008 to test if Bitcoin can act as a safe-haven asset.
- Melker stood up for Bitcoin suggesting that traders during an economic crisis must limit their expectations and should not add pressure to Bitcoin to be a safe-haven asset.
- Flori Marque, BlockFi’s cofounder suggested BTC has to be uncorrelated with equity markets for it to do well shortly.
Bitcoin has largely been uncorrelated throughout its existence. That being the point, it was without a choice supposed to be an uncorrelated asset. Bitcoin is thought to be an effective hedge against global fiat. Most of the people in the crypto industry have waited for a financial crisis similar to that in 2008. This is to test if the Bitcoin can prove to be uncorrelated and to act as a safe-haven asset.
Bitcoin experienced a drop of 50% in March in just a few hours. Bitcoin was expected to report at least a little gain after it faced continuous disappointment but unfortunately, it faced a freefall.
The largest cryptocurrency of the world was reported to have lost 24% of its value in the time of just an hour. At present, many have guessed over Bitcoin’s course. Most of them believe that bitcoin will fall to zero in the fullness of time.
However, few of the bitcoiners exist who have advocated Bitcoin and have backed up with a reason for why it had not performed up to expectations. To cite one such instance, Scott Melker who is a prominent crypto trader and advisor lately commented regarding the same.
Melker reasoned out as to why Bitcoin’ s performance was not as expected
Melker stood up for Bitcoin. He suggested that traders must limit their expectations and should not add pressure to Bitcoin to be a safe-haven asset. Especially, during the times of economic crisis. He further claimed that Bitcoin was only supposed to be a hedge against fiat collapses and not market collapses. Adding that there exists hyperinflation too.
Melker’s proclamation was that Bitcoin’s price has been moved by a few whales who decided suddenly regardless of the time. He stated the reason for the price fall. Because some whales needed to cover their losses in other markets, BTCs were sold by the top hedge funds institutions. He added that he doesn’t think BTC must be expected to perform as a safe-haven at the current time.
Another point to draw attention to is the Bitcoin’s digital gold narrative. BTC is unfolded as gold in a digital form and Bitcoin in actuality has supported this narrative.
Flori Marque, cofounder of BlockFi and other prominent crypto contributors have suggested BTC has to be uncorrelated with equity markets for it to do well shortly. But according to what is observed, the BTC-GLD correlation has started to increase after it was on a decline.
