(MENAFN - Baystreet.ca) The price of bitcoin rose with the broader market to close out the trading week on August 16. Analysts and economists have warned that the chances of a global recession have increased in the face of trade headwinds. This has led investors to seek out havens like gold and silver.
Earlier this year, it appeared that bitcoin had earned a place among the reliable safe havens. However, regulatory pressures have hurt its standing.
TokenAnalyst, a London-based crypto analytics firm, recently stated that the recent bitcoin selloff was not due to a $3 billion Chinese Ponzi scheme called PlusToken. However, other companies like blockchain investment firm Primitive Ventures, have argued that PlusToken has been selling large quantities of bitcoin. In any case, the loss of confidence in the wake of the scam is not good for bitcoin's outlook.
Bitcoin has received some good news on the regulatory front. The United Kingdom Financial Conduct Authority (FCA) recently revealed that it does not intend to introduce regulations for bitcoin and Ethereum. U.S. President Donald Trump and his Treasury Secretary had made vague promises of a crackdown against bitcoin this summer, but the U.S. has yet to make a concerted effort in this area.
There are serious questions over whether bitcoin is a worthwhile target as a haven, especially with gold performing so well in 2019. It remains a risky and highly unpredictable speculative asset as we look ahead to September.