Stocks Fall 10% In A Week As Global Recession Signals, Can Bitcoin (BTC) Hold As A Store Of Value (SoV)? – Coingape

The S&P 500 value has dipped over 10% in the past week, its highest weekly loss since the global financial crisis in 2008, raising huge concern across the financial world. Gold on the other hand is on a steady rise as an ounce of gold hit a nine-year high of $1,690 USD earlier in the week. While the former has presented unprecedented gains prior to the sharp fall over the week, the latter asset is continuing to make its case as the go-to store of value (SoV) for investors.

In any SoV discussion, Bitcoin (BTC) has become a common conversation and the recent volatile moves in BTCs market is a factor that a number of analysts are debating. After briefly dropping below the $8,500 USD, questions were raised on BTCs actual use as a store of value.

Over the past, three month, the world has been fighting off the Corona Virus epidemic that has affected financial markets in equal proportion as the S&P 500 witnessed its lowest fall since the GFC in 2008. The stock market falling has seen a number of investors looking at alternative assets across the board with money flowing into gold and commodity markets.

One market that has not enjoyed any capital bumps is BTCs market, which experienced over 10% in losses over the past week lower than the S&P 500. Is BTC losing its sense of a store of value?

Having lost close to $30 billion over the past week, is BTC volatile nature killing its prospects as a store of value? Probably not.

Well, BTC may be entering its first ever bearish global trend as the stock market and commodities market experience the first ever drawdown since the global recession. Well, it has not started off so brightly in the days following the spread of corona virus to a number of countries but the long term prospects of BTC look healthy to provide safety for investors in times of economic repression.

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Stocks Fall 10% In A Week As Global Recession Signals, Can Bitcoin (BTC) Hold As A Store Of Value (SoV)?

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In any SoV discussion, Bitcoin (BTC) has become a common conversation and the recent volatile moves in BTCs market is a factor that a number of analysts are debating. After briefly dropping below the $8,500 USD, questions were raised on BTCs actual use as a store of value.

Author

Lujan Odera

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Coingape

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Stocks Fall 10% In A Week As Global Recession Signals, Can Bitcoin (BTC) Hold As A Store Of Value (SoV)? - Coingape