Investors flocked to the precious metal instead of bitcoin today as fears of a recession, either in the short-term or long-term, loom. | Source: Shutterstock
The bitcoin price is trading mostly flat today despite the fact that the stock market got hammered, with the Dow Jones tumbling some 400 points. Meanwhile, the gold price is looking bullish and is currently trading above $1,500 per ounce. For some reason, investors flocked to the precious metal instead of digital gold, at least today, as fears of a recession, either in the short-term or long-term, loom. Crypto trader Brian Kelly on CNBC said that “macro buyers are using bitcoin as a currency hedge” but adds that BTC wallet address growth, which reflects user adoption, isn’t where it needs to be.
For months, bitcoin has been looking like a safe-haven asset in this uncertain global economy. Trader Peter Tchir points out in Forbes that the BTC price has been “[moving] more or less in lines with the headlines.” As a safe-haven asset should, the price has ebbed and flowed in tandem with the tone of trade talks between the U.S. and China. Not today. If you’re wondering why you’re not alone. Tchir suggested on Twitter that it could have something to do with the “new China crypto chatter.”
Bloomberg Crypto reports that “China’s central bank says its own cryptocurrency is ‘close’ to release.’” China’s move toward a digital currency is seemingly defensive in nature, with tech companies such as Facebook now plotting to create their own coins that would threaten the status of fiat money. BC Technology Group’s Dave Chapman told Bloomberg:
“It is without doubt that with the announcement of Libra,