IS Bitcoin the new safe haven? The once traditional 'save haven'; the Japanese Yen, has fallen out of favor as Japan tackles the worst inflation in 40 years. Yet gold could be the hedge between crypto's speculative appeal and YEN instability.
(Chart 1)
(Chart 2)
Has Bitcoin (BTC) become a default 'safe' haven? Which is an oxymoron to say the least, still with the YEN, was once seen a safe have currency, is now at multi-decade lows against the U.S. Dollar; while the Bank of Japan's shift has been uncomfortable and without any adaptivity from an extremely dovish Central Bank to what one call slightly Hawkish in tackling the worst inflation Japan has in over 40 years. Reluctant, like most Central Banks, to reach their terminal interest rate targets quickly. As globally their hope is on that inflation has peaked without applying extra rate rises. Thus, this has of course placed the YEN under a crisis of confidence to which most investors would rather not store their monies in.
As noted with Chart 1. Showing the YEN with Bitcoin (BTC), indicating two things, the strength of the U.S. Dollar as the Federal Reserve have continued with rate hikes, nearing their 5% terminal rate. And the possibility that the BTC could offer a safe haven other than buying YEN as way of off setting global calamity.
Could it be?
Chart 2. Shows that BTC has peaked at 5.61% since for the last quarter (December 2022) lows, 1st blue angled line. And has since settled at 4.37% to date, 2nd percentage line. In comparison, the YEN, from its January 2023 lows has rallied 4.35% (1st pale green line) to the current 2.07% as noted with its 2nd line and timeframe.
If BTC and Crypto are looking like a possible alternative save haven in lieu of global currencies. What would the hedge be for Crypto? If a larger, more significant crisis emerges in 2023. Well that would be gold, refer to Chart 3. Note the gold price remaining solid between the speculating of BTC and the instability of the YEN.
Comments
Post a Comment