June 6, 2023

Brighton Journal

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The global economy was so bad this week that Bitcoin outperformed the majors

The global economy was so bad this week that Bitcoin outperformed the majors

With currencies including the British pound and Chinese yuan falling, Bitcoin bucked the trend, growing 6.3% over the past seven days and courting $20,000.

Macro conditions, including rising inflation and financial uncertainty, have hit global markets. Although Bitcoin is largely in line with financial volatility, its strong performance over the past week has shocked some traders and highlighted the turbulent times.

“You know we have come to a unique time in history when #Bitcoin suddenly became less volatile than fiat currencies,” chirp Sven Heinrich, founder of NorthmanTrader, a market research firm.

The British Pound has fallen more than 5% over the past week and is close to parity with the US Dollar. Analysts attributed Undoing discontent with newly appointed Prime Minister Liz Truss’s new policies, as well as growing discontent Energy of the US dollar due to higher interest rates.

“This is not Bitcoin,” chirp Angela Rayner, Labour’s member of the UK Parliament, poses with a photo of a quick downward plot. “It’s sterling.”

Other major currencies suffered similarly, with the Chinese yuan also falling against the US dollar. Analysts attributed This is to beware of the country’s response to Covid and growing economic problems.

Bitcoin faced its own volatility in September, rising at the beginning of the month before dropping sharply in mid-September amid higher-than-expected reports of US inflation.

Although Bitcoin has been described as an inflation hedge, its association with US markets illustrates its growing influence over traditional finance. Crypto entrepreneur Tyler Winklevoss chirp That Bitcoin’s characteristics “dictate that it should be inversely related to inflation,” with its poor performance showing “how early it is.”

Such as The New York Times DealBook mentionedBitcoin is traded very much like risky assets, such as technology stocks. Its rally over the past week has been a bit of an aberration, with Bitcoin being slightly green during the month while tech dominates. Nasdaq It decreased by about 10%.

Supporters seem to be enjoying the recent rebound, especially with the decline in traditional assets. Bank of England Governor Andrew Bailey was particularly critical of the cryptocurrency, which Bitcoin magazine was keen to note.

“Sterling is down 12% since the governor of the Bank of England said ‘be prepared to lose all your money’ in bitcoin and crypto,” Bitcoin Magazine account chirp.

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