Some Experts Suggest Bitcoin May be Among the Only “Safe” Assets Trading in the Face of Covid-19

Some Experts Suggest Bitcoin May be Among the Only "Safe" Assets Trading in the Face of Covid-19
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As the Covid-19 pandemic continues to bite, the market has experienced upheavals with huge swings and wild drops. These triggered a market-wide circuit breaker four times in March. Circuit breakers are pauses in trading with the hopes that the market will calm down.

On Monday, the International Monetary Fund (IMF) said it expected the coronavirus pandemic to cause a global recession in 2020. According to the IMF, the downturn could be as bad as the 2008 financial crisis or worse.

While gold is normally considered a solid investment, it has not been acting safe of late, having taken a 24 percent dip in the last few months. In addition,the S&P 500 has dropped 20 percent while Bitcoin fell below 7k.

The pandemic has seen stock markets face harsh times due to quarantines and lockdown across the globe. As a result, some markets have opted to make changes in their mode of operation. The New York Stock Exchange went to fully electronic trading on Monday, and the Chicago Mercantile Exchange has also shut down its trading floor, as in-person trading floors have become too risky

If trading floors become too risky and the market drops further, the market might incur heavy losses. The situation could get much worse if the pandemic keeps biting and the markets are forced to close.

This is where virtual currency, with Bitcoin being the most popular, stands out from the crowd in the financial market. So, why would Bitcoin and other cryptocurrencies stand out in the face of a troubled financial market? Well, cryptocurrencies are decentralized and can trade 24 hours, unlike centralized markets that must open and close at specific times. This means that Bitcoin is immune to shutdowns due to the corona outbreak.

Basically, Bitcoin is designed to function on a standalone basis. It does not need banks or governments to regulate it. Nor does it rely on international currencies or other systems needed by conventional markets to operate. Even in the face of internet outages, satellite and mesh networks keep the Bitcoin blockchain in the game.

Over the last two days, Bitcoin crossed the $6,800 threshold to trade at $6,822 on Friday, March 27, 2020. Without meaningful resistance, Bitcoin seems set to hit the $7,000 mark.

With such strong indicators, Bitcoin may prove itself a safe haven asset in the midst of a looming financial market shutdown.

It is with these in mind that Dan Hedi, a seasoned crypto trader suggested that Bitcoin may be one of the last assets still holding strong amidst the turmoil in the market.

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