Fears of a U.S. recession have resurfaced over the last two days and the resulting risk aversion is bringing a boost to gold.
The U.S. Institute of Supply Management said Tuesday its manufacturing index fell to a 10-year low of 47.8 percent last month from 49.1 percent in August.
The gloomy data suggests a boosted risk of a recession in 2020, as seen in the chart below tweeted by popular analyst Holger Zschaepitz.
The probability of the U.S. economy falling into a recession next year is now greater than 40 percent.
The threat of a recession has sent global equities lower.
The yellow metal, a classic safe haven asset, is clearly benefiting from the recession concerns and the resulting risk aversion.
The lack of demand for bitcoin as a safe haven asset amid the economic worries appears to contradict the argument often put forward by many observers that the cryptocurrency is digital gold.
These factors suggest BTC is yet to take over the role of a classic safe haven and remains a largely uncorrelated asset.
BTC seems to have all the properties of haven assets.
Bitcoin image via CoinDesk Archives; charts by Trading View.
Gold, Not Bitcoin, Is Drawing Haven Demand on US Recession Fears
gepubliceerd op Oct 3, 2019
by Coindesk | gepubliceerd op Coinage
Coinage
Vermeld in dit artikel
Recent nieuws
Alles zien
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.