What You’re Being Told About Bitcoin is Wrong…

On Monday, during my weekly sit down with America’s most-watched business TV host, Stuart Varney, the topic of a flight to safety came up. A flight to safety is when investors sell what they perceive to be higher risks investments for safer ones.

But Stuart didn’t want to know about your traditional, run-of-the-mill flight to safety in assets like gold or U.S. treasuries. Instead, he asked about one of the newer assets available to investors these days…

Bitcoin.

Stuart mentioned that Bitcoin had recently reached its highest level since October, and asked me if the cryptocurrency’s big move up since early December was due to a flight to safety over coronavirus concerns.

Take a look…

Stuart is likely correct that the coronavirus scare has led many to seek a safe haven that can still deliver profits in the event of a market downturn.

But there’s a major Reality Gap that has formed between what investors believe Bitcoin will do in a market downturn or recession and how the cryptocurrency will actually perform.


Here’s what I mean…


The Market Remains Wary About Coronavirus. Here’s Why You Should, Too

The biggest (recurring) Reality Gap this week:

Apologies for sounding like a broken record, but China’s coronavirus outbreak is still the biggest market-moving story.

As I said last week, the number of new cases and deaths is slowing down. This is still true, with transmission even slower, despite the News Media hyping up every new case.

This slowing down in the transmission rate is why markets did so well last week.

JPMorgan Chase & Co. (JPM) agrees, and two days after I sent you my chart on the slowing spread of the virus, they sent a very similar one to their clients.

But this week I’ll be very cautiously bullish, as there is some potential for the spread of the virus to accelerate again, and market participants are limiting their exposure to this risk ahead of time.

Here’s why