Think about this for a moment…
During a rally of between May 4th and May 18th, the world’s largest cryptocurrency, Bitcoin price appreciated more than 50% against the US dollar, with a high of $7,946.01.
Markets were down across the board, with the Dow Jones Industrial Average falling 696 points, and the U.S. equity markets down.
That’s not all
According to Mati Greenspan, chief market analyst at eToro, there was a dramatic rise in the amount of Bitcoin deposited surging 13% between 4th and 18th May when Bitcoin surged against the US dollar.
Do you want to know why?
Growing concerns about a bond market recession by investors and the US-China trade war has people moving their assets out of traditional markets.
An escalation in the tit-for-tat trade war between the world’s two biggest economies and news that China was going to add tariffs on around $60 billion U.S. goods saw a sharp decline in stocks.
The Chinese yuan declined to a four-month low while stocks in mainland China fell to four-month lows as well.
According to the head of research at Blockchain.com Garrick Hileman, who was interviewed by the South China Morning Post, Bitcoin and China’s official currency, Renminbi has formed a correlation when the Renminbi plunged to a six month low in May.
He said that they observed the rise of Bitcoin closely correlated with the decline in the RMB during the trade tensions.
This suggests that during potential economic crises, Bitcoin is being treated as a hedge by investors which explains the dramatic increase in bitcoin holdings by investors on the eToro platform.
Hileman is not the only one to make a correlation with Bitcoin.
Managing partner at NobleBridge Wealth Management, Tyrone Ross also believes that people are looking at bitcoin as a credible asset, as a type of digital gold.
Still not convinced?
Andy Brenner, Head of International fixed income at National Alliance Securities, also made a correlation between the rise of Bitcoin and the divergence in Chinese currency prices.
He observed the latest run of Bitcoin coincided with the fall in the value of the Chinese Yuan vs the dollar.
He thinks it is logical that Bitcoin would be a short term alternative if you were in China and wanted to diversify.
In addition to that, after starting the year around $3,700, Bitcoin has more than doubled.
Compare it to the S&P 500 which is only up around 12% for the same period.
Astonishing, isn’t it?
Unfortunately, Bitcoin is also faced with negative news.
Just a month ago, one of the world largest cryptocurrency exchanges was hacked with 7,000 bitcoin worth $40 million being stolen from Binance.
The simple truth is that…
It just goes to show the importance of trading with a reliable and honest broker like eToro.
In addition to that
In a study that was published by Bitwise, it showed that 95% of Bitcoin spot trading is faked by unregulated exchanges, making it ripe for manipulation.
But one thing’s for sure, Bitcoin is becoming a safe haven or the ‘digital gold’ when markets hit headwinds.
The best part?
Is that you have the opportunity to trade with the leading social networking provider eToro who provide a unique trading platform where you can invest in over 1,000 trading instruments CFDs or contracts for difference, which includes:
And here’s the extra good news:
You have a choice of the most popular cryptocurrencies like Bitcoin, Ether (digital currency for the Ethereum blockchain), Bitcoin Cash, Ripple, Dash, Litecoin, Ethereum Classic, Stellar Lumens and NEO to choose from.
By trading cryptocurrencies at eToro, you won’t get left behind especially with Bitcoin and other cryptocurrencies making a comeback.
Allow us to explain
eToro recently launched the eToroX exchange with the addition of new instruments:
- 2 commodity-stablecoins: eToro Gold (GOLDX) and eToro Silver (SLVX)
- 2 new fiat-stablecoins: eToro Ruble (RUBX) and eToro Yuan (CNYX)
- 17 fiat pairs: USDEX-EURX, USDEX-GBPX, USDEX-JPYX, USDEX-CHFX, USDEX-AUDX, USDEX-NZDX, USDEX-CADX, USDEX-RUBX, USDEX-CNYX, EURX-GBPX, EURX-JPYX, EUR-CHF, EURX-AUDX, EURX-NZDX, EURX-CADX, GOLDX-USDEX and SLVX-USDEX
A unique and innovative platform
eToro has emerged as the leading social network provider because of its unique and innovative trading platform which has over 10 million users worldwide.
Here, you can mimic another trader’s portfolio and interact and connect with other traders through social media platforms like LinkedIn, Facebook and others.
To top it off…
You also can store, send and receive multiple coins on eToro’s digital multi-signature wallet which makes it convenient and easy to convert between them.
Here are just some of the many perks you get to enjoy when you sign-up:
- Intuitive and easy to use platform
- Learn about trading strategies, risk management tools and lots more in the education program, with video’s, e-books and more
- Low minimum deposit of only $200
- No hidden fees or commissions
- Exclusive trader programs and frequent financial news updates
- Powerful, advanced financial trading tools
- Free demo account with $100,000 virtual money to practice trades