Bitcoin has been trading sideways over recent months as traders and investors speculate over its potential as a safe haven asset similar to gold.
The bitcoin price yesterday fellow below the psycological $10,000 mark before rebounding, swinging more than $1,000 per bitcoin in under 24 hours and leaving market watchers with whiplash.
Now, amid fears the world economy could be tettering on the edge of a recession, a prominent venture capitalist and bitcoin investor has warned a "severe" financial crisis would weigh heavily on the price of bitcoin.
"When you think about really severe crises taking place, a liquidity crunch, another global financial crisis, I think that bitcoin will struggle to do very well from a price perspective," Spencer Bogart, a general partner at venture capital firm Blockchain Capital, told Bloomberg, a financial newswire.
An array of economic indicators have triggered alarm bells that the world's economy could be about to stall.
Earlier this month, the closely-watched U.S. bond yield curve turned negative, meaning the cost of borrowing money for the U.S. government was lower over the longer-term than the shorter-term.
Elsewhere, Germany, the economic engine of Europe, recorded a drop in its gross domestic product during the second quarter of 2019; expectations are that its economy will contract again in the third quarter and enter into technical recession.
"I think longer term bitcoin will absolutely be a safe haven," Bogard added.
"I mean as it grows up the adoption curve we see bitcoin kind of evolving as it goes. So I think right now it is kind of in this intermediate state right now where you really have to think what the risks are and how severe are they. So I think that when you have looming risks of monetary devaluation, things like this, bitcoin certainly looks very attractive, and I think that was a large driver of the recent run-up in price."
The bitcoin price yesterday fellow below […]