Hey Ninja’s, how’s the trading going? On the day the crypto-market is trading sideways with the largest cryptocurrency bitcoin reporting daily gains of 15 and is trading at $9,425 at press time. Top altcoins Ethereum and XRP are also reporting daily gains of 1%.
South Korean experts stated that cryptocurrencies should not be considered a safe-haven during the COViD-19 pandemic through local media outlets on the 11th of June. Professor Hong Ki-hoon of Hongik University told The Scoop that it would be a poor choice to consider Crypto-assets such as Bitcoin as a safe-haven asset on the level of dollars, gold or the U.S treasury bonds. However, he explained that there has been a surge in the inflow of money in the crypto market and this is due to the volatility in the financial market.
He further explained that for an asset to be considered a safe-haven two conditions must be met. The asset must possess low volatility and if when the market volatility increases the value of the asset must also increase. Cryptocurrencies do not meet these conditions, hence they cannot be considered a safe-haven he suggested.