Glassnode: Bitcoin remains a key hedging tool

Since the beginning of March, the flagship cryptoactive has encountered certain difficulties in liquidity. However, most experts agree that institutional investors still perceive it as one of the key risk hedging tools. Bitcoin demonstrated a direct correlation with gold for a long time. But when in the last 30 days the precious metal set new price maximums, the main digital coin lost its position.

According to analysts from Glassnode, this situation will not last long due to the stable demand of large investors. Experts also believe that in the medium term, digital gold reaches $ 155 thousand. As an argument, experts drew attention to the drawdown of the dollar index (DXY). Often in such periods, bitcoin strengthens its position.

The key restraint remains a trade confrontation between China and the USA. In such conditions, the federal system of the United States is unlikely to mitigate monetary policy. On the other hand, many officials of the department are still agreeing that the regulator will reduce the key rate twice this year. Glassnode experts also noted that, despite the unfavorable macroeconomic environment, The main digital coin demonstrated outstanding stability.

Analysts emphasized: the confident growth of gold was expected. In conditions of political instability, market participants always prefer to transfer capital into more conservative tools that remain precious metals.

But at the moment, large investors hold bitcoin in the portfolio without trying to initiate sales. This speaks of their confidence in the prospects of the flagship crypto.

Author

Andrey Alexandrov