- CEO of Global Macro Investor, Raoul Pal, bullish on the price of Bitcoin (BTC) in light of the decline of the global financial system.
- BTC has been decoupling itself from gold and the S&P 500 while breaking the $6,500 mark.
After going through one of its worst crashes in its history, Bitcoin (BTC) is starting to show a surge in its price. During the last month the cryptocurrencies market and the traditional financial market recorded big losses. This is due to the spread of the COVID-19 which has brought great uncertainty and panic around the world. However, the CEO and founder of Global Macro Investor, Raoul Pal, is bullish regarding the adverse situation.
Through his Twitter account, Pal referred to the current state of the traditional financial market. After registering historical losses, the world’s main central banks implemented drastic measures. In an attempt to prevent total collapse, the U.S. Federal Reserve and the European Central Bank announced purchase programs of 700 billion dollars and 700 billion euros respectively. Thus, the financial institutions seek to mitigate the effects of the pandemic on the markets, but have issued an unprecedented amount of public debt. In that sense, Pal wrote:
I can not express how bullish I am on bitcoin. We are at risk of losing the entire system right now. I know they will find a way to save it but all trust is lost.
Gold guys/girls – you’ll be fine too. It’s just that $BTC has bigger upside, by far but is riskier than gold.
The negative performance of Bitcoin has not prevented investors like Pal from feeling optimistic. Bullish investors point out that Bitcoin was created precisely to deal with an economic situation like the current one. In the face of inflation and centralization, Bitcoin offers a fixed supply and an immutable monetary policy.
Another important personality who has shown interest in Bitcoin is former CIA and NSA agent Edward Snowden. In his Twitter account, Snowden wrote that this is the first time he feels like buying Bitcoin. He added that the fall of Bitcoin is “too much panic and not enough reason”.
Decoupling of Bitcoin from the stock market
On the other hand, some analysts have pointed out that Bitcoin has started to decouple from the stock market. Over the past few weeks, the cryptocurrency had shown a strong correlation with this market. As uncertainty about the pandemic grew, investors sought to secure their money in cash. Therefore, Bitcoin’s price was reacting negatively with the stock market.
As the Bitcoiner and member of the crypto community, Hodlonaut, points out the stock market remains on a downward path. On the contrary, Bitcoin’s price stands at $6,641, at the time of publication, with gains of 21% in the last 24 hours. In the weekly chart, Bitcoin shows a 31% gain. On the contrary, the S&P has made an 11% loss in the last 4 days.
Last 4 days:
S&P down 11%
Dow down 13%
Bitcoin up 49%
— hodlonaut?⚡? (@hodlonaut) March 20, 2020