Why Bitcoin-gold-crisis Theory Might Be Wrong
I mostly trade commodities, but I can not that what is hapenning in stock markets. They were heading down and then, small investors driver by greed reversed a quick downtrend creating Nike-brand pattern. Confidence of big players remains low and it is not an only fundamental or sentimental indicator speaking of possible reversal back to downtrend, which might cause economic crisis and recession. With that in mind, let's talk about Bitcoin and cryptomarket.
Popular theory says, Bitcoin is similar to gold in many ways. Therefore, as investors look for safe assets in the market, they will see Bitcoin as an opportunity. It is both limited, creating more gold of other elements would be incredibly expensive, so is mining gold or bitcoin. However, in last economic crisis, gold went down too, suggesting, next bubble will be appearing when crisis ends. Here is a video by Alessio Rastani, one of very successfull traders.
I don't think remaining traders and investors included in cryptocurrencies do need to look to transfer their money back. They are clever people in my opinion and clever people look for information first. Clever people are also wanted and have more jobs opportunities no matter what. Plenty of people believing the theory about bitcoin-gold correlation may also invest in the market, which might cause several days / weeks lasting growth. But it has never lived through any financial crisis yet, so we can't predict big players behaviour. We might go sideways too.
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