• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
Bitcoin
Nexo Logo

Veteran Trader: Bitcoin Should be Viewed as “Catastrophic Insurance Policy”

Cole Petersen by Cole Petersen
2 years ago
in Bitcoin, Cryptocurrency news
Reading Time: 2 mins read
Advertisement

Bitcoin has been firmly acting as a risk-on asset over the past several weeks, with its price closely tracking the movements seen by the U.S. stock markets. This has invalidated its status as a safe haven asset and has made the benchmark crypto prone to seeing massive near-term downside.

Although BTC has been moving in tandem with the Dow Jones, S&P 500, and other benchmark indices, one veteran trader and highly respected analyst is now noting that he believes investors should view Bitcoin, Gold, and other precious metals as “catastrophic insurance policies.”

This seems to insinuate that Bitcoin may not benefit from the ongoing economic turmoil seen across the globe unless it morphs into something much worse than a recession.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Bitcoin Shows Signs of Breaking its Coupling with U.S. Stock Market 

At the time of writing, Bitcoin is trading over 7% at its current price of $6,400, which marks a notable climb from daily lows of $5,800 that were set yesterday evening when crypto investors reacted negatively to the massive decline in the stock market’s futures.

It is important to note that equities were able to rebound slightly during today’s trading session, erasing a portion of last night’s losses.

In spite of this, the Dow Jones and S&P 500 still both closed down roughly 3% today, with the Nasdaq only declining by 0.3%.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Today’s market decline allowed Gold to surge over 5%, with the safe haven asset showing some striking similarities to Bitcoin’s price action.

Because BTC is currently attempting to rally in the face of significant pressure on the global markets, it is possible that it will soon decouple from equities and begin establishing some independent momentum.

Will BTC Become Insurance Against a Global Catastrophe? 

Peter Brandt, a prominent trader with decades of experience, explained in a recent tweet that from an investment perspective, he sees both Gold and Bitcoin as having value as insurance policies against a “worst case scenario.”

“IMO, precious metals (GOLD and BTC) should be viewed as catastrophic insurance policies – not as investments. A premium is paid, hoping the policy is never needed. But if it is needed, the owner is protected against a worst-case scenario,” he explained, lumping in Bitcoin with Gold.

IMO, precious metals (#GOLD and $BTC) should be viewed as catastrophic insurance policies — not as investments. A premium is paid, hoping the policy is never needed. But if it is needed, the owner is protected against a worst case scenario. https://t.co/JrMhQe0jIF

— Peter Brandt (@PeterLBrandt) March 23, 2020

If Brandt’s theory proves to be accurate and Bitcoin does end up deriving its value from this source, it may ultimately benefit from the ongoing economic downturn.

Featured image from Shutterstock.
Tags: bitcoinbtccrypto
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Cole Petersen

Cole Petersen

Cole is a cryptocurrency analyst based in Los Angeles. He studied at the University of California Irvine and has been interested in Bitcoin and the crypto markets since 2013.

Related Posts

crypto bitcoin btc btcusd Ethereum

Why Crypto Is “Likely To Dump” As It Lags The S&P 500, Expert Says

57 mins ago
bitcoin

Outflows Rock Bitcoin As Institutional Investors Pull The Plug, More Downside Coming?

1 hour ago
Fetch.ai Announces DabbaFlow, A File Sharing and Data Management Platform

Fetch.ai Announces DabbaFlow, A File Sharing and Data Management Platform

2 hours ago
What Is Play-and-Earn by BeaRex and Why It Is Revolutionary for GameFi

What Is Play-and-Earn by BeaRex and Why It Is Revolutionary for GameFi

11 hours ago
More security, transparency, and scalability: What blockchain needs for mass adoption

More security, transparency, and scalability: What blockchain needs for mass adoption

12 hours ago
CoinEx Institution|From NFT to NFT-fi: Real Demands or False Propositions?

CoinEx Institution|From NFT to NFT-fi: Real Demands or False Propositions?

12 hours ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
BC.Game

BC.Game

Review · Visit
Punt Casino

Punt Casino

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
BC.Game

BC.Game

Review · Visit

When Marketplaces Meet Predictions: The Curious Case Of Fair Prediction Launches

June 28, 2022

Globiance Goes Live on CoinMarketCap And 6 Exchanges (CEX)

June 28, 2022

Why is Klein Finance so important to KCC (KuCoin Community Chain)?

June 28, 2022

LBank Exchange Will List SENSO on June 28, 2022

June 28, 2022

LBank Exchange Will List LOOT on June 29, 2022

June 28, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.