AvaTrade Describe Bitcoin as “Safe Haven” From Market Turmoil

AvaTrade Describe Bitcoin as “Safe Haven” From Market Turmoil

After a disastrous week for investment following the huge sell-offs in crucial international markets due to growing coronavirus concern, many are concerned about trading in this current climate. However, Avatrade is arguing the contrary and see the current situation as an opportunity for investors.

They had already shared this belief earlier this week when they also described the sell-off as an overreaction on investors’ part. While they alluded to the possibility that the current situation could be beneficial for those who dare to go against the market, they did not fully substantiate these claims. However, in their latest blog post that shared just a few hours ago, they have been clearer about the specifics about what is a good opportunity, specifically in regards to the leading cryptocurrency asset, bitcoin.

As per Avatrade, their earlier estimations about the market overreacting to the Coronavirus have been so far substantiated by the value of gold in relation to the equity market. Notably, that while many of the leading equity markets have suffered and indices, such as the Down Jones, the FTSE 100, the DAX, the Nikkei and the Hang Seng, have seen drops of 10% gold will end the week in negative territory.

This means that threats of a recession from the Coronavirus are essentially fake news and that the world is not coming to an end. Although the global supply chain will continue to suffer for now. On the contrary to popular belief, Avatrade has described the sell-off as “healthy” and has essentially come from bears on the market attempting to find a way to secure correction after a long period of bullish markets.

What does this mean for traders then? Well, in their own words, “investors should consider the sell-off as an opportunity to bag top stocks at a much deeper discount. Having said this, there is no need to rush, because we are still nowhere near the bottom, the equity markets are likely to remain jittery for a prolonged time.”  Essentially, there is no need to panic buy or sell right now.

Gold and Bitcoin

The two peculiarities in regard to this are gold and bitcoin. Gold should be reflecting the current financial market and so, in theory, would increase in value. However, this has not been the case and this is because it is yet to affect the corporate default rate. Only when the influence of the supply chains disruption effects will there be an increase in gold’s value and so this may cause certain alarm bells to start ringing. As such, this is the asset you want to watch out for as where that goes could mean that you should start thinking about your investments.

One such investment that is looking like a good one if this does happen is bitcoin – which AvaTrade describes as a “safe haven”. This is in accordance with what we mentioned a couple of weeks ago as due to it being secular in its behaviour compared to other currencies, it is essentially immune to any of the traditional market’s behaviours. So far the asset has barely moved at all reflective of what is going on elsewhere and this is likely a result of the risky situation for everyone, crypto investors and otherwise, so despite seeing good growth in recent weeks, it has stagnated.

However, if the coronavirus crises continue then this will affect the price for the better, most likely. As traders will be looking to put their money in more secure places. The price of bitcoin will particularly increase if big countries put sanctions on smaller ones if the past form of the leading crypto asset holds true.

Go to Avatrade to start benefiting from the market!

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News

Bitcoin,CoinMarketCap,Ethereum

Cryptocurrency Market Cap Jumps Past $2 Trillion

Cryptocurrencies continue to make headline news around the world as the total market cap surpassed $2 trillion on Monday. Supported by increased interest from institutional investors, celebrities, and retail investors, digital coins are now worth more than Apple Inc. Bitcoin has, once again, played a major role in the sector’s market cap. The world’s first […]

6 April, 2021
Digital Currency,Ethereum,Stablecoin

VISA Set To Support Cryptocurrency Settlements

The global payments corporation, VISA, announced on Monday that it is making preparations to allow USD Coin (USDC) to settle transactions within its network. This move is being viewed by industry analysts as yet another clear sign that cryptocurrencies are being accepted by major institutions within the traditional financial industry. USDC was selected by VISA […]

30 March, 2021
Casino,Ethereum,Gambling

CasinoFair Temporarily Shuts Down Amid Network Congestion

The popular cryptocurrency casino, CasinoFair, has announced in a recent blog post that it will be temporarily stopping its gaming services. Citing unsustainable congestion on the Ethereum network as the main reason for this pause, the casino reassured its players that it is “actively researching solutions and hope to be back with a new range […]

26 March, 2021
Bitcoin,Coinbase,CoinMarketCap

Significant Bitcoin Drops As Coinbase Announces IPO

The cryptocurrency market is back in turmoil following yet another volatile week where Bitcoin almost reached a record-breaking value of $60,000. Bitcoin drops are nothing new, but the recent 25% decrease has caused panic amongst even traders with an experience of major currency fluctuations. The latest drop comes as Coinbase, one of the world’s largest […]

1 March, 2021
Cybercrime,Scam,Trezor

Trezor Warns Users About Fake Mobile App

Trezor is warning users of a malicious mobile application featured on Google Play which appears to be associated with the wallet provider. At least 1,000 users have already downloaded this software, and it is likely that some have unwittingly provided their seed phrase to unlock their funds. Both Trezor and SatoshiLabs have confirmed the existence […]

26 January, 2021
Bitcoin,eToro,Trading

eToro Temporarily Raises Minimum Deposit To $1,000

For the past few weeks, the increase in Bitcoin’s price has led to a massive interest in cryptocurrency trading. eToro has been overwhelmed by new registrations and has decided to temporarily raise the minimum deposit from $200 to $1,000. Although 2021 has barely gotten started, it promises to be an exciting time to invest in […]

11 January, 2021
Bitcoin,Investment,Trading

Global Cryptocurrency Market Value Surpasses $1 Trillion

Thursday has proven to be a monumental day for cryptocurrencies as the world’s combined value tops the $1 Trillion mark. Energised by a substantial rise in the value of Bitcoin in recent months, the volatile crypto market has reached a once-unreachable value. Following the latest Bitcoin Halving in May 2020, the world’s largest digital token […]

10 January, 2021
Sponsored

Victory over virus: SiGMA Virtual Expo hosts 100+ exhibitors

SiGMA Europe and AIBC Virtual Expos launch with record breaking attendance, providing a cure to the industry’s events sector In the light of this year’s changes in our everyday lives, SiGMA was close to having to stop doing what it does best; creating networks for people through the company’s iconic physical events, but luckily, the […]

26 November, 2020