In Japan, Bitcoin is in a tug of war between COVID-19 and Easy Money - OhNo WTF Crypto

Breaking News

In Japan, Bitcoin is in a tug of war between COVID-19 and Easy Money

#crypto #bitcoin


While Bitcoin is starting to be thought of as a safe haven asset, in the event of a crisis large enough to cause cash flow problems, it is inevitably sold precisely because it is a digital asset.

There may be situations where unless they can generate cash, businesses could go bankrupt or individuals may be unable to go about their daily lives. In these situations, even gold can be sold, as seen at the time of the Lehman Brothers bankruptcy.

As is the case in the U.S., in Japan, talk of additional monetary easing has emerged. Notably, the Bank of Japan has already pledged that it is ready to supply additional funding to the markets.

It is difficult to predict the future course of the markets, given that it is very hard to foresee the impact of the new coronavirus. From a macro perspective, the bitcoin price will likely be pulled in different directions by two opposing forces: the negative impact from the coronavirus and the positive impact from the inflow of easy money into safe-haven assets.

In the meantime, the Bitcoin halving is drawing near. With the strong impacts of the coronavirus and easy money, the Bitcoin halving will likely struggle to have an impact on the markets in the short term.

There is no telling when the coronavirus threat will fade. If nations are able to mitigate against the virus, eventually a full-fledged Bitcoin rally will benefit from the inflow of easy money.

Until then, investors’ nerves will be put to the test. It remains to be seen whether investors can remain calm enough to stay in the market without heading for the exit.



OhNoCrypto

via https://www.ohnocrypto.com

News, Khareem Sudlow