Although the market is currently very uncertain, some experts believe that gold and bitcoin (BTC) are the perfect hedge against future downturns. BTC remains one of the best performing assets and continues to be decoupled from the equity markets.
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According to the Bloomberg Commodity Outlook of June 2020, Bitcoin and gold will not be affected by the further chaotic conditions on the stock markets. Numerous analysts point to both assets as safe havens against upheavals in the broader financial sector.
An excerpt from the Bloomberg market outlook:
“Among the few assets in this turbulent year, we believe gold and bitcoin are the basis for further price hikes. The metal and cryptocurrency remain our top candidates to advance 2020 with additional rally fuel from Covid-19. ”
It was the WHO that described COVID-19 as a pandemic in March, causing markets to falter. Bitcoin fell almost 50 percent, landing at almost $ 3,800. This reset leads to a positive correlation between Bitcoin and the stock market for a few weeks, which has however disappeared again.After this crash, Bitcoin’s market cap has recovered and its value has tripled since then. Should gold remain above USD 1,700, this would mean that it will see a significant upward trend in 2020.