Is Bitcoin Still a Safe Haven Asset?

• Despite what is a common belief, the leading cryptocurrency is still a safe haven asset even after its massive price drop. 
• According to Bloqport, the inability that bitcoin has in retaining its value over other assets has raised questions in regards to its status as a safe-haven.

Despite what is probably a common belief in the world right now, the leading cryptocurrency is still a safe haven asset even after its massive price drop over this past week. At least that’s according to Bloqport, a digital assets research company. The inability that bitcoin has in retaining its value over other assets has raised several questions in regards to its status as a safe-haven asset.

Over this past week, we have seen a massive change in the cryptocurrency markets. Currently trading at just above the $5000 mark, bitcoin has shredded nearly $5000 worth of its value.

This is all due to the outbreak of the coronavirus which is also seen the stock markets take a turn for the worse. Economies are collapsing and the recession is very much looking to become a reality. Concerns have been expressed by several experts in that there was a strong correlation between bitcoin and other ‘risky’ assets. This is a sign to signal to investors that digital assets such as bitcoin cannot be relied on in taking on the massive pressure of the markets in the future.

The report from Bloqport may have put many investors concerns to rest though as they recently published a tweet in which the recent behaviour is like gold during the 2008 financial crisis.

During that time, gold had a massive 30% crash leaving many people out of pocket. It dropped down to $700 from $1000 which is a big indicator that it is not a safe haven asset.

Gold was not a safe haven during the 2008 crisis.

It crashed -30% ($1K to $700). Only in 2009 it began its rise to $1200.

Safe-haven assets are bought up AFTER markets bottom.

If a recession happens, watch how Bitcoin reacts thereafter, not during.

Bitcoin’s price will soar.

— Bloqport (@Bloqport) March 14, 2020

Before we finish though, it’s worth saying that we aren’t financial investors and this isn’t financial advice. Please do your own research before putting your money in a cryptocurrency and always remember to trade safe!

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!