Oct 14, · If you absolutely want bitcoin exposure, the best way to do that would be to buy fintech stock Square. Square's longest-running operating segment, . Oct 27, · Yesterday, stocks fell ~2% across the board amid new worries about Covid infection rates and staled stimulus talks. However, amidst a sea of red for stocks, bitcoin Author: Christopher Brookins. [June update] Though bitcoin and other cryptocurrencies are tracking with the stock market, a divergence could be in the near future.
Is bitcoin on the stock marketThe Stock Market Is Falling. Is Bitcoin the Answer? | The Motley Fool
It was therefore no surprise to see stock markets give up ground on Friday. But what's interesting is that investors looking for an alternative have decided that bitcoin could be the solution.
So far, the cryptocurrency market has met the challenge, but can bitcoin prices keep soaring? Despite widespread cynicism about crypto tokens, many prominent investors think the answer to that question is yes. For much of Friday's session, the stock market held its own nicely. But toward the end of the day, major market benchmarks gave up ground. Even as the stock market fell, bitcoin continued its amazing ascent. Already, bitcoin has eclipsed some of its old records.
Because of the amount of cryptocurrency mined in the past three years, the total market capitalization of available bitcoin has never been higher. Some of those gains have come as institutions have poured into the market. Institutional investors are putting plenty of money into cryptocurrencies.
With all the uncertainty surrounding the election, the economy, and the pandemic, bitcoin's move to challenge its old record highs was as easy as it would ever be.
In fact, if bitcoin hadn't made this move, it essentially would have shown investors that the cryptocurrency wasn't suitable for the purposes for which most investors held it. Now, though, the big question is what happens next. Just like the stock market is volatile, bitcoin investors should expect big ups and downs in the future. Yet investors looking for an alternative to the stock market might not get everything they need from investing in bitcoin.
Although some new bitcoin lending services offer interest on bitcoin holdings, cryptocurrencies held in traditional wallets don't generate income. Holding cash would severely cause problems for investors. Adding more woes to this are interest rates , which have hit 0. However, this might hurt the US more than it helps, especially since it is a country that has an overleveraged debt cycle waiting to pop. Source: Twitter. The surge in the stock market is a house of cards waiting to collapse.
If and when this does happen, holding cash will not help and neither will stocks. Hence, the only reasonable alternative to preserve wealth is gold. The last resort will be bitcoin, which as mentioned above, is an uncorrelated asset that can act as a hedge against the collapse of the US markets.
Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Bitcoin is down Bitcoin and stocks were positively correlated in the first and fourth quarters; both fell, although bitcoin fell a lot more. In the second and third quarters, the two were negatively correlated; stocks rose while bitcoin fell. There was no clear relationship between bitcoin and stocks in What will the relationship between bitcoin and stocks look like in ?
Will Bitcoin remain uncorrelated with the stock market? In recent weeks, bitcoin and stocks have moved in opposite directions. Furthermore, bitcoin might do well in a downturn. If you want to learn more about investing in bitcoin, subscribe to the Bitcoin Market Journal newsletter today.
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