As global turmoil escalates and macroeconomic uncertainty increases, analysts tell TheBlock that the value of Bitcoin is becoming increasingly apparent.Bitcoin is more user-friendly, stable, and globalized than some local currencies, especially in terms of geopolitical conflicts and sanctions
As global turmoil escalates and macroeconomic uncertainty increases, analysts tell TheBlock that the value of Bitcoin is becoming increasingly apparent.
Bitcoin is more user-friendly, stable, and globalized than some local currencies, especially in terms of geopolitical conflicts and sanctions. In other words, the more volatile and uncertain the world is, the more value Bitcoin can reflect, which is a sad fact, "Chief Economist Yang Youwei told TheBlock.
Bitcoin is more user-friendly, stable, and globalized than some local currencies, especially in terms of geopolitical conflicts and sanctions. In other words, the more turmoil and uncertainty in the world, the greater the value displayed by Bitcoin, which is a sad fact, "BTCM Chief Economist Youwei Yang told TheBlock.
The economist emphasized that many countries lack strong currencies like the US dollar, and emphasized that this is an opportunity for the world's largest digital asset by market value to take advantage of. Some people are unwilling to overly rely on the US dollar and its economic policies, and this is the shining point of Bitcoin, "Yang added.
Bitcoin outperforms stocks
SeiLabs co founder Jeff Feng pointed out that Bitcoin performed strongly during the stock market index's pullback in September and October this year. He added, "The resilience of Bitcoin, especially compared to the recent downturn in stock market indices, proves that digital assets can serve as a potential hedging tool during turbulent times, similar to gold
Although Bitcoin prices have been trading sideways near the $27000 mark recently, key indices such as the Dow Jones and Russell 2000 have significantly declined. This reinforces the argument that Bitcoin is showcasing its value proposition as a hedge against market uncertainty.
However, Feng warned investors to moderate this view and keep in mind the inherent volatility of the asset. He added, "The volatility of Bitcoin often leads to sharp fluctuations in its price in a short period of time, which is usually unrelated to more stable gold
Feng added that regulatory uncertainty in various jurisdictions may also hinder the widespread adoption of Bitcoin. He added that traditional hedging tools such as gold do not have to face this obstacle.
The world's largest digital asset by market value traded flat this week. According to CoinGecko, as of 1:00 pm Eastern Time, the price of Bitcoin was $26926.
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