Bitcoin (BTC) was fighting for $9,000 support on May 12 as more public praise surfaced amid continued dismal conditions for the world economy.
Cryptocurrency market daily overview. Source: Coin360
BTC price unmoved by halving
Bitcoin 1-day chart. Source: CoinMarketCap
After its third block subsidy halving completed, excitement has grown over the next price move for Bitcoin, which lost $1,200 in the run-up to the event at the weekend.
Palihapitiya warns on “massive deflationary spiral”
Earlier on Tuesday, the chairman of Virgin Galactic called Bitcoin the most “uncorrelated” asset to fiat markets as the U.S. dollar faces a “massive deflationary spiral.”
“When we started to believe in the long-term value of Bitcoin, it was as a store of value and it was that schmuck insurance that you kept under the mattress,” he told the network.
CNBC referenced Monday’s interview with investment giant Paul Tudor Jones, who revealed on air that he now kept between 1% and 2% of his total assets in BTC.
“The reason is because now we are in this massive deflationary spiral, and you have to figure out how you’re going to protect yourself,” Palihapitiya continued.
And so however you think about it — from classic economic theory or the schmuck insurance or you’re somewhat skeptical of the established government masses — it is important that we have a hedge, a non-correlated hedge. And I still struggle to find anything that is as uncorrelated to anything else and to everything else than Bitcoin.