Bitcoin Proves as a Safe Haven in Uncertain Times
In the current period, banks are experiencing difficulties due to various factors affecting the global economy. Despite the negative news surrounding banks and their struggles, Bitcoin and gold are showing positive trends. Both asset classes are traditionally considered safe havens in uncertain times. Today, crypto analyst Kaleo shared a chart that indicates the value of Bitcoin is rising against the S&P 500 stock index. The analyst claims that this trend is a direct result of uncertainty among banks.
Bitcoin to $40,000?
For an extended period, since the end of 2021, the price of Bitcoin had been declining against the S&P 500. However, this trend seems to have broken. Kaleo’s chart shows that the BTX/SPX price has broken out of a falling wedge. The analyst believes that this chart shows the potential for Bitcoin to reach a price of $40,000.
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Targets for Bitcoin Price Above Us
With Bitcoin rising against the SPX index in the middle of a banking crisis, it is solidifying its status as a “safe haven,” according to the analyst. Kaleo believes that this trend means targets for the Bitcoin price are above us. According to the analyst, “Looking at the BTC/SPX ratio, we haven’t even broken above 2017 ATH. With BTC continuing to strengthen and proving to be a safe haven from banking fears, a return to the May ’22 breakdown level feels quite intuitive.”
Daily Bitcoin News
Apart from these predictions, it is noteworthy that Bitcoin continues to grow as an asset class, despite market volatility. Yesterday’s news indicated that Bitcoin miners have earned $50 billion in revenue since 2010, and this is just the beginning. The trading volume in April marks a 65% decrease, which is primarily due to Binance stopping free trading in some Bitcoin trading pairs.
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In conclusion, while the COVID-19 pandemic has had a catastrophic impact globally, it has also led to unprecedented economic uncertainty. During these uncertain times, Bitcoin has emerged as a unique asset class, with the potential to provide stability to investors. According to Kaleo, Bitcoin’s status as a safe haven is strengthening thanks to its increasing value against the SPX index. While this is a positive sign for the future of Bitcoin, investors should always consider factors that could impact the market.