Institutions Eye Bitcoin as Hedge Against Global Economic Volatility

The world has arguably been teetering on the brink of a recession for months now. But recent events could be pushing the global economy even closer to the precipice. The coronavirus outbreak has choked China’s output, leading to predictions that it will trigger a global slowdown. Europe is facing its own challenges amid ongoing Brexit uncertainty, economic contraction in Germany, and the continuing strikes in France.

So, it’s unsurprising that investor attention is turning to the asset classes that do not correlate with the stock markets. The price of gold saw an uptick in the first week of February, as did the price of Bitcoin (BTC), which rose above $10,000 for the first time this year.

Although Bitcoin’s price hike could be due to a whole variety of factors, one possible cause is the increasing use of digital currencies as a hedging instrument. Anthony Pompliano certainly thinks so, having told Cointelegraph recently that he believes there is increasing evidence to support…