Bitcoin Disappoints as a Hedge… For Now

As with my recent post, (saying it’s still early days for Bitcoin to prove an effective hedge in times of crisis) we’ve now seen a dramatic panic sell-off, thanks to the economic threat posed by the Coronavirus, COVID-19.

Volatility continues, and we saw correlation with other markets, as investors have been switching into fiat value as the most popular hedge. Fair enough, but it’s a shame about all the other great projects in the space, that currently need support from stronger-hand hodlers.

For seasoned crypto traders it’s easy (and attractive) to exit into stablecoin, and instead earn interest as the market reacts to such events. Getting the timing right can be down to sheer luck.

[On the subject of interest, Coinmarketcap now has a very useful section listing interest rates for many cryptos. I’ll add this to ever-popular Ade’s Press CryptoLinks.]

The case will be even more volatile for altcoin projects. However, the way some projects are currently rebounding, shows how far the space has come, and where excitement still rests. Notably, HBAR ( Hedera Hashgraph) has been performing well, possibly still on the back of its positioning of Google on its Hedera Council, and being a large project with different tech and a lot development so far. [However, as ever, there are aspects to consider which make…