Concerns in Italy have some Cryptocurrency Analysts Making Correlations
Bitcoin is trading near 7,500.00 U.S Dollars per coin as of this writing. The cryptocurrency has managed to gain the past day after stumbling to lows early this week which were the culmination of a near two-week downturn.
The VIX Index in Chicago has risen the past couple of days. And global equities lost swiftly yesterday on the major international stock indexes.
This has occurred as news from Italy has created further downdrafts for the EUR/USD pair. Gold is trading near 1300.00 U.S Dollars per ounce.
However, the simple platitude that Bitcoin rose on fears because Italy is having political problems and is looking at the prospects on another election in July as some of its politicians point their finger at the EUR as a culprit may not actually have any link.
The fact is that the EUR has lost considerable ground to the USD because the U.S Federal Reserve is maintaining a hawkish interest rate policy, while the European Union has once again hit an oil slick and will probably have to maintain a dovish stance midterm.
Bitcoin’s Short-Term Rise Likely not a Safe Haven Move
Stock markets have in fact stumbled and treaded water since January of this year, and while Bitcoin rose in value yesterday, it is no secret the cryptocurrency has also suffered a vast slide since January after seeing its values rise to record levels in December of 2017.
Meaning that a desire to correlate one poor day of trading on the global markets, fear escalating because of Italy’s problems and a rise in the value of Bitcoin is probably a reach that will prove to have no significance.
It is doubtful that Gold has been replaced by Bitcoin as a safe haven asset quite yet. The value of Gold has been beaten down as the value of the U.S Dollar has soared the past two months of trading. The precious metal was near 1350.00 U.S Dollar per ounce two months ago. And Bitcoin is essentially straddling a price range it found itself in March before it was able to stage a rally in April before succumbing to its most recent slide.
Suggested Articles
-
GPU and ASIC – A Correlation and Barometer for Cryptocurrency Traders
-
Bitcoin’s Lightning Network: How Can it Solve Bitcoin’s Biggest Problem
VIX Volatility has Spiked this Week but Remains below March Levels
News of Bitcoin’s bounce off support yesterday may prove to be a turning point. However, it also may prove to be a one day result which happened to move coincidentally in step with the VIX when the stock markets also happened to be suffering a downturn.