Aug 5, 2019 19:21 UTC
Aug 5, 2019 at 19:21 UTC
A “Perfect Storm” Is Brewing For Bitcoin, Says Delphi Digital
According to industry research firm Delphi Digital, Bitcoin may be facing a “perfect storm”.
Delphi Digital, has noted some important aspects about Bitcoin in its quarterly, macroeconomic newsletter.
They have observed that BTC continues remain absolutely uncorrelated to key indices like the S&P 500. This acts as a sign that Bitcoin’s status as “digital gold” is being realized.
This uncorrelation comes in spite of the fact that there have been growing geopolitical and macroeconomic tensions, like the trade war between the U.S. and China, that have hurt many investments.
A twitter thread by Delphi, discussing the same topic read,
“ The Perfect Storm for Bitcoin is Brewing. Our team just released our Quarterly Macro Outlook, which digs deep into the key drivers behind Bitcoin’s long-term value proposition as a non-sovereign, digitally native store of value.”
The firm further explained how the growing risk of currency devaluation should be a boon for Bitcoin and gold.
Bitcoin might still be far from being the reserve asset of the world, but it has started to show the characteristics of a safe haven asset.
The recent steps taken by US President Donald Trump with respect to tariffs led to interesting movements in the market. After the American President’s tweets and quips, stocks fell across the board, with few exceptions like the Japanese Yen, Swiss Franc, and gold.
Joining this group was, surprisingly, Bitcoin. Another interesting thing to be noted is the fact that gold and BTC have posted a very similar percent gain since the latest development in the tariff dispute.
A similar pattern of positive price movement in the wake of the tariff news was also seen earlier this year, implying somewhat of a trend.
Another data analytics service, Coinmetrics, found out that the number of untouched Bitcoin (unchanged UTXOs) over time periods like one-year, two-years, and five-years — have continued to head higher, showing that many investors are starting to perceive the cryptocurrency as a store of wealth.
Delphi Digital’s view of Bitcoin’s correlation with macroeconomic factors has been echoed by the likes of American investor Anthony Pompliano, who recently stated that the European Central Bank’s expected turn will be “rocket fuel” for Bitcoin.