Bitcoin Currencies

Bitcoin Price A Sign For Coming Global Recession?

The sudden #swell of Bitcoin’s price to $8,000 USD this #year shows global #recession fears are mounting. This according to Michael #Hartnett, the chief investment #strategist at Bank of America Merrill #Lynch.

Bitcoin, bitcoin price

Bitcoin price has doubled in 2019 but the rally is only getting started. | Source: Shutterstock

Interestingly enough, #Hartnett says global #investors are investing in bitcoin not because they see it as a safe haven #asset in times of #instability but because they are seeking high-risk, high-reward #investments. He argues the #effect of low-interest #rates since 2008 on #bond yields has left investors starved of profits, sending them into a global “greed #trade” across #corporate, emerging market, and #crypto #securities.

BITCOIN’S PRICE STREAK IS ACTUALLY A BIT ALARMING

Hartnett says #investors are afraid of losing their #savings in an imminent #recession and seeking high returns to shore up their #wealth. If major #global #investors that used to invest in bonds, the safest assets in the #world, have jumped ship to swim for #bitcoin — the #ponzi scheme currency of #lunatics, hackers, scammers, criminals, misfits, and the hopelessly #naive — how bad do the world’s big #players know things are? #Terrifying.

Bitcoin, bitcoin price, Crypto

Bitcoin is back up near $8,000. | Source: Shutterstock

Bitcoin #proponents should pause the victory lap for a #moment and let it sink in how weird this is. #Regular-ish, everyday-ish people with deep #pockets who used to buy #investments like bonds are now investing like all the fringe #lunatics. That is a massive and very sudden #collapse of# confidence in the world’s #governments and the basic structure of the financial #system. This could be some fall of the Roman #Empire level #phenomena unfolding before our very eyes in #real time.

#JPMORGAN: BITCOIN’S PRICE ONLY MAKES SENSE IN A DYSTOPIAN ENVIRONMENT

Earlier this year John #Normand, JPMorgan’s head of cross-asset fundamental #strategy, said in a research note:

“We have long been skeptical of #cryptocurrencies’ value in most environments other than a dystopian one characterized by a loss of #faith in all #major reserve assets (dollar, euro, yen, gold) and in the #payments system.”

#Dystopia is the mother of #invention. Well, bitcoin’s value is clearly very #high. A #tsunami of investors have now joined the early #adopters in hoarding the digital asset like it’s running #out. Which it is. So by this JP Morgan head’s reasoning, the escalating U.S. #China trade #war among other global #macro #trends has pushed the #economic #environment to the brink of dystopia.

And now a #BankofAmerica Chief is saying #investors are losing faith in our #government and the financial #establishment. But no one needed a big #bank chief to tell us they’re flipping their #guts over what the establishment’s doing to their #money right now. Bitcoin’s early #adopters know how #afraid of bitcoin the rest of the world was.

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