- Over the years, bitcoin has been one of those assets that you either love or hate.
- Many people believe it is an uncorrelated asset or a diversification for many peoples portfolios.
Over the years, bitcoin has been one of those assets that you either love or hate. Many people believe it is an uncorrelated asset or a diversification for many peoples portfolios. With the coronavirus pandemic impacting the world in every shape and form, and the sudden stop to supply chains and industries, there have been some permanent damages to the economy in many countries. The reserve bank of India has recently said that the GDP is expected to be in the negative for the nation.
Stagflation is a big worry right now within the crypto space as well as the overall economy. As this continues, the economic output is decreasing and inflation is on the rise.
Recently, the leading cryptocurrency hit a key resistance level of $12,000 and many people expect some serious bullish activity to occur in the coming days/weeks for the flagship cryptocurrency. With this in mind, will bitcoin be able to handle the stagflation needed for institutional investors looking to spruce up their portfolios...
In the past, gold has been the asset that many investors go to during times of recession or inflation. But with the relatively higher correlation bitcoin has, it shows that both of these assets can be used to help the incoming stagflation in the economy.
It will be hard to predict what comes next for bitcoin and the overall economy but what we do know is that the COVID-19 pandemic has had a massive impact on the future of not only finances but our day-to-day lives.