Insight: The World Becomes More Unstable, Bitcoin Gains Value
Amidst global turmoil and unpredictable shifts, the value of Bitcoin has become increasingly apparent and highly regarded by many analysts.
Insight: The World Becomes More Unstable, Bitcoin Gains Value. Image: Pinterest
Bitcoin Thrives as the World Relies More on USD
The escalation of macroeconomic conditions coupled with geopolitical instability highlights the pivotal role and core value of Bitcoin, according to The Block.
"Bitcoin is user-friendly, stable, and more globally applicable than many local currencies, especially in situations of geopolitical conflict and sanctions. In other words, the more instability in the world, the more Bitcoin shines in its value proposition, although this is a regrettable reality," stated leading economist Youwei Yang of BTCM.
Yang believes that many countries lack a robust currency like the US dollar, presenting an opportunity for Bitcoin—the world's largest market capitalization digital asset—to ascend.
"When people feel uneasy due to over-reliance on the US dollar and its economic policies, that's when Bitcoin shines," Yang emphasized.
Bitcoin Outshines Stocks
Co-founder of Sei Labs, Jeff Feng, also underscores Bitcoin's strength over the past two months amidst declining stock market indices.
"The resilience of Bitcoin, especially when combined with the recent market downturn, underscores its role as a hedge during chaotic times, similar to gold."
Despite Bitcoin's recent trading around $27,000, which demonstrates its resilience, the Dow Jones and Russell 2000 indices have experienced significant declines.
However, Feng cautioned investors not to be complacent due to the inherently volatile nature of this asset class:
"Bitcoin prices often experience intense fluctuations in short periods. In this aspect, gold is more stable."
Furthermore, regulatory inconsistencies across different jurisdictions pose a barrier to global Bitcoin adoption, an obstacle traditional assets like gold have easily overcome.
The market's leading cryptocurrency is trading around $27,184, with an increase of over 1.2% in the past 24 hours, largely driven by news that the SEC will not appeal the Grayscale ruling. ETF news continues to be a significant catalyst for Bitcoin and the entire cryptocurrency market heading into early next year. However, altcoins are still vigorously chasing the elder brother, as Bitcoin Dominance approaches its highest level in two years.
1D chart of BTC/USDT pair on Binance at 08:10 AM on October 16, 2023
