fbpx

Crypto a safe haven?

 In Newsletter

Issue No. 126

 

Assets Covered: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), SPDR Gold Shares (GLD), United States S&P 500 Stock Market Index (SPX)

 

As we see deflationary indicators begin to emerge, we expect continued shifts in equity markets. People are looking for a safe place to store their cash to weather the economic storm. How long and how hard it will hit is yet to be seen.

 

We’ve been seeing some interesting trends in crypto currencies recently. The question is not how stable crypto currencies are, but are they more stable than other assets? A recent Oxford Law study took a look at how crypto currency market was affected during the Covid-19 pandemic. They saw a rush to invest in crypto markets as case numbers increased, but there was a tipping point and crypto markets reversed.

 

But as we see over time there may be indicators that the favored crypto currency – Bitcoin – may be showing strength in the face of a wobbly stock market.

 

Tim Draper, a famous Silicon Valley investor, also told CNBC that he is moving his stock portfolio to Bitcoin, presuming that “bitcoin in 2022 or the beginning of 2023 will hit $250,000”. Not everyone is as optimistic as Draper.

 

Below is our outlook for Bitcoin compared to the S&P 500 Index and Gold. Our forecast shows a steady decline in the S&P 500 through mid-Q3.

 

 

S&P500 Stock Market Index and Gold Forecast 2020
United States S&P 500 Stock Market Index (SPX) and SPDR Gold Shares (GLD) forecast through August 2020
CI Futures generated this chart. Book a demo to see it in action.

 

S&P 500 Index and Bitcoin 2020 Forecast

United States S&P 500 Stock Market Index (SPX) and Bitcoin (BTC/USD) forecast through August 2020
CI Futures generated this chart. Book a demo to see it in action.

 

Bitcoin was not immune to the market drop—saw nearly a 30 percent drop in value from February to March. It has bounced back—average end of day closing price for April was at $7,222.

 

As for the crypto market as whole, well, we’ve included a few more forecasts below. In short, we’re not expecting values to skyrocket – at least in the short term.

 

Bitcoin BTC forecast 2020

Bitcoin (BTC/USD) forecast through August 2020
CI Futures generated this chart. Book a demo to see it in action.

 

Ethereum Forecast 2020

Ethereum (ETH/USD) forecast through August 2020
CI Futures generated this chart. Book a demo to see it in action.

 

Ripple Forecast 2020

Ripple (XRP/USD) forecast through August 2020
CI Futures generated this chart. Book a demo to see it in action.

 

Interested to see our late Q3, Q4 and 2021 outlook for crypto currencies, the S&P 500 Index or any of the other 700+ assets that we cover? Schedule a demo with us today.

 

oil markets take a turnAg Commodities outlook