Another recession indicator flashes

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For the umpteenth time in a few weeks, a recession indicator started to flash. Bitcoin, which began to be classified as a "safe haven", could benefit from such a move in traditional financial markets.

Related reading: Bitcoins fell below $ 8,000 by now "highly unlikely": here's why

Incoming recession Bitcoin can outperform

In recent months, analysts and investors around the world have begun to fear a recession. While some are still optimistic and are demanding new heights for the S & P 500, more and more data suggests an impending withdrawal from traditional finance. Bitcoin, as mentioned above, could be the beneficiary of such a move.

As reported this week on the Twitter account "OddStats", US Treasury data show that one-month Treasury bills have yielded more than all maturities up to 30 years.

This means that a short-term purchase of public debt had a higher return than that of all long-term debts. For those with basic economics knowledge, it makes almost no sense.

OddStats points out that this happened for the last time in 2007, before the Great Recession. If history were repeated, the market could still have a few months to run before a fall.

Sending to an analyst a year or two ago, they might have suggested that Bitcoin would fall with the stock, just as the blue-chip stocks were criticized in 2008.

Related Reading: Cryptographic Tidbits: Bakkt Bitcoin Futures, Coinbase & Xapo, IRS Cryptocurrency Crackdown

But now, it seems that a recession will only be good for Bitcoin.

The most-published British newspaper, Metro, has recently published an article on Bitcoin on its website. An editor of the newspaper pointed out that the BTC is "less influenced by the instability of the economy" – a safe haven or a store of value – and is much more private than traditional forms of money.

Wall Street analysts and a number of leading investors in the cryptography industry echoed this analysis.

Bloomberg recently noticed that the correlation between gold and Bitcoin had nearly doubled in the last six months, from 0.496 to just over 0.842. Take a look at this chart from Binance's research division, which shows that when gold has risen sharply due to a new Trump tariff, the crypto-currency preferred in the world the was also.

With the current recession, which has been highlighted by macroeconomic turmoil and geopolitical uncertainties (Hong Kong protests, trade wars, irresponsible monetary policy, etc.), gold is expected to recover, as will Bitcoin. .

Featured image of Shutterstock



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