Amidst the Global Recession, Bitcoin Is the Best Performer
Both British Pound and Chinese Yuan have been freefalling for a couple of days performing quite poorly and providing ample opportunities to make wild speculation about the state of which the current global economy. The pound lost 5% over the week and demonstrated that international investors are not pleased with the direction Liz Truss is taking the country. The delayed reaction of the Central Bank may also affect the price down the line.
Bitcoin has been showing resilience this whole time
Bitcoin is doing outstandingly well. Despite many arguments against the flagship token as the hedging mechanism against inflation, it is undeniable that investors are much more interested in keeping their money in decentralized digital currencies amidst the recession that devastated multiple national fiat currencies including the state-backed Yuan.
Right when the British pound started tumbling down, Bitcoin surged to $20K and managed to gain 6.3% over just a day of trading. Since then, the asset lost its positions over the $20K mark but after multiple price retracements, it seems to be very close. As of the time of writing, BTC is hovering above the crucial $19.5K line and seems to be taking root.
Many analysts joked about Bitcoin becoming a more stable asset than fiat currencies. The volatility that has been overwhelming both Yuan and Pound seems to be not only a concerning but also a long-lasting issue. Among many other digital assets, Bitcoin remains acting as a haven for investors looking for a safe harbor during periods of market instability. Unfortunately, other assets are less stable.
Ethereum is still struggling
ETH has been moving downwards for two consecutive weeks. It is currently trading at $1,336 which is surprisingly good despite being close to a two-month low. At least, it is not as chaotic and unpredictable. ETH stabilized after a week of the bear market following the conclusion of the merge with the Beacon network that proved to be quite underwhelming.
Other cryptocurrencies were also less impressive compared to Bitcoin and did not show the same level of resilience and stability as the flagship token of the crypto industry.