With the increase in global unrest and increasing macroeconomic uncertainty. Analysts say that the value of bitcoin That is starting to become more clear.
“Bitcoin is more user-friendly, stable and global than some local currencies. This is especially true in conflicts and boycotts. Or in other words The more unrest and uncertainty in the world, the more value Bitcoin will show. And it is a sad reality,” BTCM Chief Economist Youwei Yang said.
Economists emphasize that Many countries lack a currency as strong as the US dollar. He emphasized that this is an opportunity for the world’s largest digital assets to benefit from market capitalization. “Some people are uncomfortable being dependent on the U.S. dollar. and excessive economic policy That is where Bitcoin stands out,” Yang added.
Bitcoin outperforms stocks
Jeff Feng, co-founder of Sei Labs, points to bitcoin’s strong performance through September and into October of this year. When the stock market index decreases
“Bitcoin’s resilience, especially relative to the recent slump in stock market indices, lends credence to the belief that digital assets act as a hedge during turbulent times. It is similar to gold,” he added.
Although the price Bitcoin It is trading sideways in a narrow range around $27,000, but major indices such as the Dow Jones and Russell 2000 are also falling sharply. This strengthens the argument that bitcoin is demonstrating its value as a hedge against market uncertainty.
However, Feng cautioned investors to adjust their attitude. and taking into account the inherent volatility of assets “Bitcoin’s volatility often sees prices fluctuate wildly over short periods of time, a trait that runs counter to the more stable nature of gold.”
Feng added that regulatory uncertainty in different countries could hinder the international adoption of Bitcoin.
refer : theblock
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