Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Monday, 30 March 01:33 (GMT -05:00)



Foreign exchange market

Bitcoin, Gold, and Crude Oil. Cryptocurrencies' Place Among Conventional Assets.


Can Bitcoin be called a safe-haven asset? This cryptocurrency is called the new gold or the digital gold, but many investors are really skeptical about these statements. 
 

Bitcoin and Gold

 

Not so long ago, when the tensions between the United States and Iran escalated, gold managed to set a new 7-year high, while BTC surged by around 20%. This raise a new wave of discussions related to the correlation between gold and Bitcoin.
 
Having taken a closer look at the price charts of both assets, we can see that gold reached the highest price level since 2013 earlier this month while BTC did that back in late 2017. OK, let's talk about how these two assets can be related. So, having analyzed the two markets over the period of April 2013 through December 2019, we can conclude that these two correlated at the level of 46,5%. Interestingly enough, we can see that the the same ratio between gold and Bitcoin used to be 60,3% in 2018 and increased all the way up to 70,8% in 2019. Some experts say that this indicates that the cryptocurrency market is getting mature.
 

Naive Cryptocurrency Investors' Dreams

 

Over the past week, the price of gold increased all the way up to a new major high - 1606 dollars per ounce. At the same time, Bitcoin recovered up to 8300 dollars per coin, which turned out to be the highest price level since November 2019.
With that being said, being focused on the price correlations alone, investors may come to the conclusion that gold and Bitcoin are truly related to some extent. However, the data is insufficient to be confident about this. Simply put, Bitcoin's data record is too short compared to the one of gold to be confident that the current correlation will remain the same in the future.
 

Crude Oil and BTC

 

Now let's take a closer look at the correlation between the markets of crude oil and cryptocurrencies. Apparently, after the conflict between the United States and Iran escalated, crude oil increased in price as well - around 4% with a couple of days. So, we can see a positive correlation of 22% in 2018 and a negative one of -3,7% in 2019.
 

What Is Bitcoin?

 

Once again, it's really difficult to say for sure what it is. On the one hand, it behaves like a safe-haven asset. It started surging back in 2013 during the banking crisis in Cyprus , and it keeps on growing now that we can get another conflict between the USA and Iran. However, is this sufficient to call it a safe-haven asset?
 
Over the long term, considering the past few years, Bitcoin can promise investors much biger profit potential than gold or crude oil, but this probably has to do with the speculative nature of the asset. So, calling it a safe-haven asset at this point is a questionable idea. On the other hand, Bitcoin is relatively free of governmental interventions and geopolitical risks. Which is why cryptocurrencies are gradually turning into the digital gold amid escalating geopolitical risks.
 
So, can we call Bitcoin a safe-haven asset? Not yet. But 2020 can really help it to make a few big steps to becoming one in the near future...

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Binance and Cryptocurrency Exchange

These days, Binance is a a giant in the world of cryptocurrency exchange. It wont' be an exaggeration to say that this is a Microsoft or a Mercedes in the world of cryptocurrencies. This is a major brand and a symbol of security for those investing in Bitcoin and other digital currencies.

Publication date: 29 March 11:24 PM

Dollar Becomes Safe-Haven Asset Amid COVID-19 Pandemic

Publication date: 22 March 07:48 AM

Fed Cuts Interest Rates. What Does It Mean For Bitcoin?

Publication date: 17 March 12:14 AM

Fed Cuts Interest Rates Again Amid COVID-19 Pandemic

The U.S. Federal Reserve, which can be considered the world's most influencial central bank, has been really serious about the COVID-19 pandemic going on around the world. For the first time in the history of the Federal Reserve, the central bank has done it twice within a couple of weeks. This time, the key interest rate was cut by 100 basis points, which brought it very close to zero. To be more specific, during the recent urgent FOMC meeting that took place on Sunday, March 15th, the FOMC members almost unanimously decided to cut the interest rated from 1,00-1,25% all the way down to 0,00--,25%.

Publication date: 16 March 07:57 AM

Coronavirus's Impact On Markets Intensifies, NordFX

The period when the coronavirus makes everyone stay at home can be seen as a perfect time for traders and investors to do some extra trading and investing. To help both rookies and seasoned traders and investors to navigate the markets and see the current tendencies much clearer, NordFX has come up with yet another weekly set of forecasts:

Publication date: 15 March 12:17 PM

TOP 5 Bitcoin Investors

Cryptocurrencies have offered really stunning moneymaking opportunities to a big number of people out there. This is due to the fact that getting started with investing in cryptocurrencies is relatively easy and affordable to pretty much anyone. Making money with cryptocurrencies is possible, which is confirmed by the world's leading Bitcoin investors. So, in today's article we are going to talk about the top 5 Bitcoin investors.
Publication date: 05 March 10:33 AM

Trading Approaches, As Seen By Professionals

Each and every trader out there should choose the right trading approach that will suit them best. Trading experts say that are 6 trading approaches:

Publication date: 22 February 12:39 PM

Dollar Grows Versus Euro. BTC Is At $9000. Trump And His 'Deal Of The Century'.

It seems that the Chinese coronavirus is gradually becoming the biggest driver in financial markets. At the same time, Donald Trump has recently announced another version of his peace plan for the Middle East. If this agreement manifests itself, then you may expect major changes in exchange rates.

Publication date: 05 February 12:51 AM

Forex and Cryptocurrency Predictions by NordFX. January 27th-31st, 2020.

Right before the start of the last last trading week of January, NordFX experts came up with another set of market predictions for the forex and cryptocurrency markets. Their predictions are based on the consensus forecast compiled from various market forecasts made by various market experts as well as the result of technical analysis. The period is January 27th-31st. So, this is what those predictions look like:
Publication date: 26 January 12:18 PM

Forex and Cryptocurrency Forecasts for mid-January 2019

Before the start of the last trading week of October, the NordFX expert team has come up with another set of weekly consensus forecasts for the forex and cryptocurrency markets. When devising those forecasts, the experts gathered multiple expert opinions and tech analysis. The forecast is actual for the period of January 13th through 17th, 2020. As a result, we get the following picture:

Publication date: 12 January 04:29 AM