Will Bitcoin keep rising over Weakening Fiats in Q4?

Recently, fiat currencies like the Euro and the British pound have lost value. GBP had already hit an all-time low of $1.03 earlier this week. In contrast, EUR was at a 20-year low in its exchange rate with the USD at the time.

Due to the aforementioned crash, many have begun to choose other assets, such as cryptocurrency. In fact, according to members of the community, now is the time for Bitcoin to take the lead. Barry Silbert, the leader of crypto asset management and investing business Grayscale, recently tweeted,

“Bitcoin is on the verge of becoming the asset safe haven. No other place to hide

It is important to note that recent Messari statistics showed that investors have recently started trading their Euros and Pounds for Bitcoin. The daily volume of the Bitcoin/EUR and Bitcoin/GBP pairs recently experienced a dramatic increase, as seen below, supporting Silbert’s viewpoint.

Investors do, however, have a good reason for keeping their money in Bitcoin. Global geopolitical tensions have been rising in tandem with the continued rough macroeconomic conditions. Despite this, the largest cryptocurrency has managed to outperform the most valuable fiat currencies.

From September 20 to September 27, Bitcoin was able to provide profits for investors of 6.3%. The Yen, Yuan, Euro, and Pound decreased by 0.7%, 2.2%, 3.5%, and 5.3% respectively. In reality, throughout that time, the price of gold fell by 1.7%.

Many believe that this is only the beginning. Ran Neuner of Crypto Banter, for instance, recently tweeted that “a mass exodus” from fiat is imminent and that other currencies are waiting in line to fall. Retrospectively, Bitcoin has the potential to bulk up, for it is now a “accessible alternative.”

Others from the space like Natalie Brunell perceive fiat currencies to be Ponzi schemes. In a recent interview, she explained the reason why by saying,

“Fiat is the largest Ponzi scheme in history. Since you require ever-increasing credit in order to generate productivity and economic growth that is ever-increasingly insufficient, what else is that but a Ponzi scheme? ”

Investors have already demonstrated their trust in Bitcoin, so the current climate is still quite favourable for it to rule the world of finance.

What is Bitcoin’s future?

For the most part, October has been a very bullish month for bitcoin, bringing in an average return of +22% to investors. More broadly speaking, traditionally Q4 has been a strong quarter for Bitcoin. As demonstrated below, investors have achieved negative returns just once [in 2014, 2018, 2019] thus far in this quarter.

Traders anticipate a turnaround in Q4 as this year’s Q1, Q2, and Q3 returns all remained negative. So, the likelihood of Bitcoin resurrecting will increase if market participants’ mood continues to become more refined in the future.

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