They have been hard days for international markets. There is virtually no stock exchange or reserve asset, such as gold, that has not been hit by the Coronavirus crisis. However, within the crypto community there are still people confident in a bitcoin rally when this crisis passes. Among them Raoul Pal, market analyst and our Tweet of today.
Volatility in the Bitcoin market
Since the beginning of the health crisis caused by the Coronavirus, one of the first victims has been confidence in the financial markets. Leading to several days of collapse in the main world stock markets, generating a situation that has quickly expanded to non-traditional assets such as Bitcoin.
Despite the fact that Bitcoin is usually considered an asset value reserve and, therefore, it is expected that in situations such as the one generated by the Coronavirus it can maintain its value and even increase it, the global financial instability has been such that it has managed to hit the price havens of value like gold and BTC.
This has led several analysts to wonder if the cryptocurrency will be able to survive this crisis, or if instead we should prepare for a Bitcoin with zero value. Starting a debate in which Raoul Pal, analyst and CEO of Global Macro Investor has his opinion:
“I cannot express how optimistic I am with Bitcoin. We are at risk of losing the entire system at this time. I know they will find a way to save him but all confidence has been lost. Gold boys / girls – you guys will be fine too. It’s just that $ BTC has a higher profit, by far, but it’s riskier than gold.“
These statements would be in line with the views expressed by crypto influencers like Anthony Pompliano and Changpeng Zhao. Those who also consider that in the face of the Coronavirus crisis, and despite the initial blows, Bitcoin has the potential to rise and consolidate, in the face of the loss of confidence of the traditional financial system.
Something similar will be what happens with gold, the other asset value reserve affected in recent days.
Do you think Bitcoin and gold will be fine? Leave it in the comment box!