Over the past few days, Bitcoin has been worth around $ 7300, which is good news after the crash a month ago. The first cryptocurrency has recovered to the level at the beginning of the year, which now seems a century ago.
Due to the incredibly rich negative news background, cryptocurrency market participants began to forget about purely “cryptocurrency” events. However, they do happen. Yesterday this happened on the Bitcoin Cash (BCH) network. In normal times, this would be a pretty significant event for the entire sector. After halving in 2012 and 2016, there was an acceleration in the growth of BTC. This is what investors expect from other coins.
However, altcoins may not behave like a reference cryptocurrency. Litecoin (LTC) has shown that for altcoins it all ends with increased volatility and speculation. Litecoin, which survived halving last year, is now trading relatively close to the crypto winter lows. Probably such a scenario can wait for bitcoin cache (BCH).
The growing community focus on the correlation between the stock market and bitcoin should not be ignored. Crypto enthusiasts don't like this topic in principle, since digital currencies "should be a permanent asset." However, after the March 12 crash, Arcane Research analyzed the situation and concluded that the S & P500 and Bitcoin are showing a growing correlation. Recently, relations have somewhat weakened, but market participants have come to the main conclusion: when planetary events occur, everything is interconnected.
It is unlikely that Bitcoin will ever become a safe haven, digital gold, safe haven or traditional risk asset. Bitcoin is a crisis asset that was invented for “socionomy”, that is, for the exchange of values between people without the participation of officials and banks. If, as the global economic crisis develops, Bitcoin does not return to its main function, retaining only a speculative component, the asset may face serious problems.