Emerging markets and their respective currencies are on the rise, which historically has had some correlation with the price of Bitcoin.
According to Morgan Stanley, the global emerging markets benchmark is expected to rise by around 8 percent in 2019, primarily due to the increase in interest in the Chinese stock market following the optimistic prospect of the trade deal.
Bitcoin Vs. Emerging Markets: Whats the Correlation?
In August 2018, global macro analyst Peter Tchir said that during periods of emerging market stress, cryptocurrencies like Bitcoin as a store of value are expected to rise.
I would have expected bitcoin and cryptocurrencies to do well in times of emerging market stress. If you live in an emerging market country, where the political situation is tenuous and your currency is devaluing rapidly, it would make sense to want to store it, or hide it, or invest it in cryptocurrency. In theory Bitcoin is the ideal hedge for a person of wealth in such a situation.
The emerging markets list for 2019 include countries like South Korea, the Philippines, China, Taiwan, and Thailand, which also represent relatively large cryptocurrency exchange markets.
While China has cracked down on cryptocurrency trading, reports have suggested that investors are still purchasing cryptocurrencies through Hong Kong or local over-the-counter (OTC) markets.
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