Bitcoin may provide some hedging for the diversification of global securities investment

According to Ambcrypto May 16, the recently published research paper “Can Cryptocurrencies Become a Safe Haven for Investors in the Future?” The Bitcoin Case Study pointed out that Bitcoin may provide some hedging for the diversification potential of global securities investment. The paper examines the relationship between Bitcoin, global economic activity, the stock market, and the foreign exchange market, while also exploring the potential of Bitcoin as a safe haven. The model consists of five variables: BTC price, Baltic Dry Freight Index (BDI), Dow Jones Industrial Average (DJIA), USD / EUR exchange rate and USD / JPY exchange rate. The article concluded that “in terms of the relationship between Bitcoin and BDI and DJIA, it is different from the exchange rate of the US dollar against the euro and the US dollar against the yen. The study found that whether it is a bull or bear market, Bitcoin and economic activity ), The stock market (DJIA) or the foreign exchange market (USD-EUR, USD-JPY) have no significant relationship. ” In addition, research further shows that Bitcoin is largely inclined to stay in the bullish phase and the probability of turning into a bearish trend is very low.

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