•   News
  •   Social
  •   Market
  • News
  • Bitcoin
  • Cryptocurrency
  • Ethereum
  • Altcoins
  • Blockchain
  • Social
  • Bitcoin Regulation
  • ICO
  • Bitcoin Cash
CoinPath
  •   News
  •   Social
  •   Market
  • Contact
  • Facebook

  • Twitter

  • Pinterest

  • Instagram

  • LinkedIn

  • RSS


Home » Bitcoin »


Bitcoin Price Predicted Hong Kong Turmoil, Used as Safe Haven, Analyst Says

Bitcoin Price Predicted Hong Kong Turmoil, Used as Safe Haven, Analyst Says

Nicholas Colas, a 30-year Wall Street analyst and co-founder of DataTrek Research, believes that bitcoin now has a nascent role as a safe haven asset. In line with several other observers on the financial sector, Colas cites recent events and the macroeconomic situation as reasons for his assessment. 

“First,” he says, “it’s kind of coming back to where it started.” Linking the state of the World’s finances now to those of just over a decade ago, when bitcoin first came into being, he illuminated his point while speaking at CNBC by adding that “it started in Jan 2009, during the financial crisis, and it really was born or that kind of turmoil.”

“Secondly,” he expanded, “it’s only grown since then, and is obviously very global. So it’s not just a US safe haven, but a really global and convenient safe haven.”  The final piece of his analysis referred to bitcoin’s continued dominance of the crypto space, both in the public eye – where it is something of a synonym for cryptocurrency as a whole – and in terms of Market Capitalisation. 

Over the last year, year and a half, bitcoin has become sort of the standard of all crypto. A year ago Bitcoin’s Market Cap was only half of all the crypto out there. Now it’s over two- thirds: 67%. So it’s also that all the scammy coins that were out there a couple years ago, have kind of died and Bitcoin’s the one left standing.

This statistic, cited as ‘dominance’ in cryptocurrency circles, has seen bitcoin’s share of the market for crypto as a whole oscillate from 80% at the beginning of 2017, to 33% in Jan 2018 before rising up from just over 50% to where it stands today during the course of 2019. 

Yesterday we reported on similar sentiments from CNBC analyst Brian Kelly, who asserted that BTC was being used as a “currency hedge”, but through “sure speculation”.

While Kelly supported a buy signal being put out by Goldman Sachs’ analysts, he believed that the current perfect macroeconomic storm of multiple stumbling global currencies and increased institutional interest that is pushing Bitcoin’s price upwards was balanced out on the negative side by a stagnation in the number of new wallets. This, he said, indicated that the lead digital asset was being used as a safe haven option “by macro players and other investors”.

By contrast, Colas pointed to recent events in Hong Kong as an indicator of how he increasingly sees Bitcoin’s growing role in world finance as a predictor of turmoil. Per his words bitcoin “really perked up around the Hong Kong protests.. bitcoin was one of the few assets we watched that actually predicted that uncertainty ahead of time, nothing else was really moving. bitcoin was.”

“With these assets, we look at percentage change” he continued. 

So when you saw a 5-10-15% change in Bitcoin over a week, that was a flashing signal that something was going to happen, we just didn’t know what – it ended up being Hong Kong. We’ll look now for a pull-back, to confirm the notion that [because of] trade talks in Hong Kong, tensions are lessening. But a 5- to-10% move to the upside on any given day? You gotta watch the rest of the tape, because something else bad’s going to happen.

However, while Colas believes Bitcoin is being used as a safe haven, he is not yet convinced it is safe, per se. When asked about the volatility in price of the asset, and the massive falls in value seen through 2018 and into 2019, he predicted that we will see another similar crypto winter. 

It will happen again. I mean, it’s important understand with all cryptocurrency – Bitcoin included – that they’re always going to be very volatile. It’s still a very young technology, a very young safe haven, it’s not going to be as stable as gold or bonds.

Bitcoin as ‘Digital Gold’

The idea of Bitcoin as a ‘Digital Gold’ has become a long-standing concept in the crypto space in recent times, and was recently identified as one of the three big ‘crypto-narratives’ by one of the co-founders of Blockchain advisory first AmaZix, Jose Macedo, in a recent Bad Crypto Podcast.

In his predictions about the value of crypto going forward, he linked the ongoing fortunes of Bitcoin to macro problems in the world economy, citing economist Ray Dalio’s belief that the world of today most closely resembles the post-depression economic turmoil of the 1930’s.

At that time in history, amid rising prices for the asset, the American Government infamously restricted the private ownership of Gold to prevent hoarding and stimulate the economy. 

“That’s really why I think Bitcoin is finding its niche in this economic environment,” Macedo said, “and why crypto is so interesting within the global macro situation.” 

Crypto Globe
Crypto Globe
August 15, 2019
Related ItemsBitcoin
Bitcoin
August 15, 2019
Crypto Globe
Crypto Globe

Related ItemsBitcoin

More in Bitcoin

  • chinese-bitcoin-miners-control-65%-of-the-crypto-network’s-processing-power;-bitmain’s-market-share-continues-to-decline
    Read More
    Chinese bitcoin miners control 65% of the crypto network’s processing power; Bitmain’s market share continues to decline

    Bitcoin miners in China now control 65% of the cryptocurrency network's processing power (hash rate), according to...

    The Block December 13, 2019
  • facing-regulatory-pressure,-chinese-exchanges-want-to-establish-legitimacy-by-cozying-up-with-one-local-government
    Read More
    Facing regulatory pressure, Chinese exchanges want to establish legitimacy by cozying up with one local government

    Quick Take Recently, two of China’s largest cryptocurrency exchanges, Huobi and OKCoin, both hosted conferences in the...

    The Block December 13, 2019
  • binance,-paxful-partner-to-bring-bitcoin-to-masses as-the-latter-supports-over-300-payment-methods
    Read More
    Binance, Paxful partner to bring bitcoin to masses as the latter supports over 300 payment methods

    Cryptocurrency exchange Binance and peer-to-peer (P2P) trading platform Paxful have joined hands to bring bitcoin to the...

    The Block December 13, 2019
  • if-bitcoin-is-going-to-$100,000-–-where-are-the-new-buyers?-crypto-analyst-tackles-btc’s-big-conundrum
    Read More
    If Bitcoin Is Going to $100,000 – Where Are the New Buyers? Crypto Analyst Tackles BTC’s Big Conundrum

    Data analysts and crypto influencers are split on how Bitcoin’s upcoming halving, which will slow the creation...

    The Daily HODL December 13, 2019
Scroll for more
Tap
CoinPath
  • Popular

  • Latest

  • anonymity-in-china’s-crypto-yuan-is-bad-news-for-us-lawmakers
    Anonymity in China’s Crypto Yuan is Bad News for US Lawmakers
    ChinaNovember 13, 2019
  • crypto-exchange-news-update-for-1–30-november-2019
    Crypto Exchange News Update for 1–30 November 2019
    ExchangesDecember 2, 2019
  • crypto-developer’s-arrest-for-aiding-north-korea-echoes-eerily-prophetic-2008-nyt-profile
    Crypto Developer’s Arrest for Aiding North Korea Echoes Eerily Prophetic 2008 NYT Profile
    cryptocurrency newsNovember 30, 2019
  • planb:-$1,000,000-btc-prediction-on-track-despite-crypto-‘panic’-–-bitcoin,-xrp,-ethereum-newsflash
    PlanB: $1,000,000 BTC Prediction on Track Despite Crypto ‘Panic’ – Bitcoin, XRP, Ethereum Newsflash
    BitcoinNovember 23, 2019
  • karatbars-proves-its-business-model
    Karatbars Proves Its Business Model
    BlockchainNovember 15, 2019
  • pewdiepie-wants-a-tesla-cybertruck-because-it’s-basically-a-halo-warthog
    PewDiePie Wants a Tesla Cybertruck Because It’s Basically a Halo Warthog
    Elon MuskNovember 23, 2019
  • german-banks-allowed-to-sell-and-custody-crypto-assets-from-2020:-report
    German Banks Allowed to Sell and Custody Crypto Assets From 2020: Report
    businessNovember 29, 2019
  • was-upbit-hack-an-attempt-to-evade-taxes?
    Was Upbit Hack An Attempt To Evade Taxes?
    Altcoin NewsNovember 28, 2019
  • the-pot-stock-crash-will-dent-bitcoin-price,-claims-peter-schiff
    The Pot Stock Crash Will Dent Bitcoin Price, Claims Peter Schiff
    BitcoinNovember 18, 2019
  • planb:-bitcoin-on-course-for-$100,000-after-halving-–-btc,-ripple,-xrp-and-litecoin-newsflash
    PlanB: Bitcoin on Course for $100,000 After Halving – BTC, Ripple, XRP and Litecoin Newsflash
    BitcoinDecember 2, 2019
  • chinese-mining-giant-bitmain-is-working-with-two-consulting-firms-to-up-its-sales-in-south-america
    Chinese mining giant Bitmain is working with two consulting firms to up its sales in South America
    antminersDecember 13, 2019
  • chinese-bitcoin-miners-control-65%-of-the-crypto-network’s-processing-power;-bitmain’s-market-share-continues-to-decline
    Chinese bitcoin miners control 65% of the crypto network’s processing power; Bitmain’s market share continues to decline
    BitcoinDecember 13, 2019
  • coinbase-explored-orchid,-now-it’s-going-to-list-it
    Coinbase explored Orchid, now it’s going to list it
    coinbaseDecember 13, 2019
  • tagomi-is-undercutting-large-crypto-exchanges-in-a-bid-to-lure-active-traders-to-its-platform
    Tagomi is undercutting large crypto exchanges in a bid to lure active traders to its platform
    The BlockDecember 13, 2019
  • franklin-templeton-invests-undisclosed-sum-in-blockchain-startup-proof-of-impact 
    Franklin Templeton invests undisclosed sum in blockchain startup Proof of Impact 
    BlockchainDecember 13, 2019
  • despite-likely-dev-fund-extension,-electric-coin-co.-may-need-to-restructure-its-operations
    Despite likely Dev Fund extension, Electric Coin Co. may need to restructure its operations
    CryptocurrencyDecember 13, 2019
  • the-european-central-bank-hopes-to-get-“ahead-of-the-curve”-on-stablecoins
    The European Central Bank hopes to get “ahead of the curve” on stablecoins
    Christine LagardeDecember 13, 2019
  • facing-regulatory-pressure,-chinese-exchanges-want-to-establish-legitimacy-by-cozying-up-with-one-local-government
    Facing regulatory pressure, Chinese exchanges want to establish legitimacy by cozying up with one local government
    AsiaDecember 13, 2019
  • binance,-paxful-partner-to-bring-bitcoin-to-masses as-the-latter-supports-over-300-payment-methods
    Binance, Paxful partner to bring bitcoin to masses as the latter supports over 300 payment methods
    BinanceDecember 13, 2019
  • robinhood-rolls-out-fractional-trading,-allowing-clients-to-trade-stocks-with-as-little-as-$1
    Robinhood rolls out fractional trading, allowing clients to trade stocks with as little as $1
    cash appDecember 13, 2019
    Sqreen | Runtime Application Protection
    About - Terms - Privacy - Disclaimer - Verification - Contact

    © 2019 CoinPath Pty Ltd
    Made with in Australia

    Newsflash: XRP Plummets 12% As Crypto Market Turns Deep Red
    Bitcoin Price Analysis: BTC Breaks $11,000 Support