Bitcoin a safe haven? It is repeated on many economic occasions, especially when the rest of the financial markets collapse, so Bitcoin is portrayed as a haven and a safe haven. How true is that?

Over the past few weeks, we have watched the markets deteriorate and burn, in a big way, it was interesting to watch the reactions of the crypto community who have in the past claimed that Bitcoin is an asset and a safe haven like gold.

If you have been following the price of Bitcoin over the past weeks, you might have noticed that it fell when the markets fell, and gradually rose as stocks went back up. What can it be concluded that any claims that the cryptocurrency is a safe haven can be dismissed now?

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The world’s leading cryptocurrency took some notable losses, dropping nearly 20% in a matter of days.

In mid-March, comparing the performance of Bitcoin with the Dow Jones Industrial Average that fell more than 2,000 points that day, and oil prices fell by 24% at the same time, Bitcoin followed them step by step.

Therefore, many investors were skeptical of Bitcoin as an ideal investment asset at this time, as the turmoil affected most of the financial markets.

Everyone is looking for liquidity.

Many investors are looking for liquidity due to the impact of the Corona virus, which has led to the selling of even assets and safe havens such as gold.

Denis Vonokorov of the London-based digital asset firm said:

Market participants will have to adjust their portfolios and deal with margin calls, it is unlikely that alternative assets will be prioritized.

Others are confident that the bitcoin sell-off in early March merely represents a general aversion to risk in a potential economic crisis, and does not necessarily invalidate the safe-haven case for bitcoin.

On April 6, the price of Bitcoin broke the $ 7,000 threshold, and this sudden rise was accompanied by a sharp rise in the traditional market futures contract on April 5, according to Cointelegraph.

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Bitcoin is still in a state of uncertainty as its price could return and test the value it fell to on March 12, when it reached $3700, and many analysts believe that the new level of $6900-7100 will not hold.

While others are more positive, pointing to Bitcoin’s ability to hedge stock market risks, referring to it as “digital gold.”

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Cointelegraph reported on April 4 that a study by Klaus Grubes indicated that Bitcoin underperformed in hedging a black swan event.

Grubes stated that this was surprising, concluding that while the study showed that gold was living up to its expectation to be a safe haven in times of turmoil, Bitcoin has turned into a curse rather than digital gold.

As is usually the case with Bitcoin, there are compelling arguments coming from a range of viewpoints, but it seems that Bitcoin in general may not be seen as a safe haven, at least not at the moment.

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