Ikigai Founder of the Asset Management company says that Bitcoin is not really acting like a safe-haven asset amidst the recession fears that shadow the US economy as we are reading today in the latest cryptocurrency news.
Travis Kling who is the multi-strategy crypto asset hedge fund manager of Ikigai says that bitcoin dwindling price action against the gloomy macroeconomic outlook is not behaving like a safe-haven asset. The CIO recognized that the investors should have perceived the number one cryptocurrency as a safe-haven by now but he doubts whether the nascent asset is ready to assume the responsibility that was established by its peers and mainly gold:
“It’s like maybe BTC is strong enough to swim in the pool right now but not in the ocean.’’
The statements from the Ikigai founder came right when Dow Jones noted its worst performance of the year over the 24-hour timeframe. The index crashed below 800 points and urged investors to flee to safety in traditional hedging assets such as gold or bonds. Bitcoin however at the same time appeared like the best asset for those investors. The number one cryptocurrency slipped close to the 9 percent yesterday which brought the weekly losses to as much as 14.40 percent. Bitcoin is now down by more than 15 percent this week.
In the meantime, the US stocks crashed on Thursday as the yield of the 10-year Treasury dropped to a three-year low. The 30-year US government bonds yields also crashed below 2 percent for the first time since 1970. The investors ditched the risky assets because of the recession fear and renewed the trade tensions between China and the United States. They also moved their capital to more safe-haven assets including bonds. In the meantime, Gold underperformed as well while some of the analysts predicted that it would even undergo a downside correction in the next couple of months. The metal’s fundamentals still remained at the same level as bitcoin. The money managers and speculators outlined that the dovish central bank policies could even push the yellow metal even further up the scale.
Some similar arguments as noted in the altcoin news projected that Bitcoin is a bullish asset among some institutional investors. The Ikigai founder noted that bitcoin’s safe-haven tag was working great against the US-China trade war but the same title ran out of fuel amidst the global economic slowdown.
The post Ikigai Founder Claims Bitcoin Is Not Acting Like Safe-Haven Asset appeared first on DC Forecasts – Leading Digital Currencies.