• About Us
  • Advertise
  • Contact Us
  • Editorial Policy
  • Privacy Policy
  • Team
BitcoinNewsUpdates
  • Altcoin News
  • Bitcoin News
  • Blockchain News
  • Cryptocurrency News
  • Press Release
  • Price Analysis
No Result
View All Result
  • Altcoin News
  • Bitcoin News
  • Blockchain News
  • Cryptocurrency News
  • Press Release
  • Price Analysis
No Result
View All Result
BitcoinNewsUpdates
No Result
View All Result
Home Bitcoin News

Is Bitcoin Really in a Safe Haven Status in Times of Crisis?

Howard Clark by Howard Clark
March 3, 2021
in Bitcoin News
0
Bitcoin Really in a Safe Haven

The one thought running through investors’ minds today is how to keep their money safe without seeing a drastic drop in value. The Covid-19 pandemic that surfaced early this year shows no sign of abating, particularly in the USA, and in many states, there has been a surge instead of slowing down. The effect on the economies around the world has been crushing, to say the least, with the lockdown keeping most industries and other sectors shut for months.

Surprisingly, the economic situation and the state of the financial markets do not match, and while Wall Street is not exactly bullish, it is not down in the dumps either. Trillions of dollars have been injected into the system to keep the monetary and financial markets afloat. But this is an artificial state only, and the real situation is not so comfortable.

In these trying times, the true worth and the safe-haven status of an asset can be understood. Most people consider Bitcoin to be a safe-haven as an investment option during an economic crisis or recession.

What is a Safe Haven?

The benchmark to consider a safe-haven status is the definition offered by Investopedia. An investment is a safe-haven if it has a stable value or even sees an increase during troubling times. Hence investors seek a safe-haven to keep their investments insulated from losses when there is a market fall or downturn. Since the value of a safe-haven asset does not decrease during an economic crisis, investors can put their money here and reduce their losses by limiting their exposure to assets heavily impacted by economic downturns.

Gold, Defensive Stocks, and Treasury Bills have traditionally been safe-haven investments, and if recent trends are anything to go by, Bitcoins may be added to the list.

Is Bitcoin a Safe Haven Investment

Most studies in this regard have focused on a single cryptocurrency, Bitcoin. While cryptos are traditionally more volatile than the usual safe-haven assets like gold or cash, investors get high returns and reduce the minimum overall risk by including Bitcoins as a major part of their diversified portfolios. Hence, Bitcoins are considered to be a safe-haven investment.

Bitcoins have acted as a buffer for investors against dropping oil price movements, the value of national currencies, commodities, and gold. However, even though considered a safe-haven, investors should also exercise some restraint as Bitcoins face several issues like cyber-criminality, pricing bubbles, and regulatory disorientation.

Studies have also brought out a certain degree of strengths of safe-haven investments. In different comparative research papers of safe-haven investment properties, it is seen that Bitcoin is stronger and more robust when compared to gold, commodities, or stock markets. The studies are based on a cross-quantilogram method for determining weak and strong safe-haven investments. However, if you are looking for free bitcoin cloud mining without investment, you must go through our section to get to know how you will get bitcoin for free.

Bitcoin Confirms Safe Haven Status During Covid-19 Pandemic

To further confirm the status of Bitcoin as a safe-haven investment in a crisis, an analysis may be made of its price movements during the Covid-19 pandemic.

On January 1, 2020, the average price of Bitcoin was about $7,200. This was the beginning of a price increase as the world lurched from crisis to crisis. Tensions escalated between the United States and Iran, and the first signs of a raging pandemic were beginning to show. As markets started on a downslide, Bitcoins rates rose above $10,000 on February 9, 2020, the first time since June 2019. Investors were reposing their faith in Bitcoin as a safe-haven status. By early March, the price of Bitcoin had stabilized between $8,500 and $9,000.

After the Bitcoin Black Thursday crash on March 12, 2020, when the crypto was trading on some platforms as low as $3,800, the skeptics questioned the safe-haven status of Bitcoin. But they did not realize that even gold had lost 10% of its value at that time.

Bitcoin came back strongly during the most stressed times due to the Covid-19 crisis to close at $6,500 a week after Black Thursday. On April 24, 2020, it rose to $7,500. Today, as the world fights recession, the Bitcoin price is $27,070. Bitcoin has once again proved its worth as a safe-haven investment during a crisis. You also trade in Bitcoin or invest in Bitcoin through the Bitcoin Code trading platform. This platform is mainly focused on making profit from Bitcoin. To know more further please do check Bitcoin Code Review by industry experts.

Conclusion

Bitcoin may be a highly volatile investment, but when it comes to the crunch, it has always provided investors with a solid investment platform with good returns. There is no doubt that it is one of the best safe-haven investment options.

Previous Post

How Does Bitcoin Transaction Work?

Next Post

What Makes Ripple a Splendid Investment Option?

Howard Clark

Howard Clark

Howard Clark is one of the best price analysis writers at BitcoinNewsUpdates. He loves to gather all the historical data and analyze them to predict the future trend of cryptocurrencies and then make his analysis pieces. In his free time, he learns new strategies and trades major cryptocurrencies.

Next Post
Ripple a Splendid Investment

What Makes Ripple a Splendid Investment Option?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Buy Dogecoin with Paypal

Why Is Dogecoin Becoming Popular? Can I Buy It With Paypal?

March 16, 2021
Holo (HOT) Token Shows Signs of an Evolving Buying Trend

Holo (HOT) Token Shows Signs of an Evolving Buying Trend

March 23, 2022
Experts Say the Bitcoin Would Go back

Know Why Some Experts Say the Bitcoin Would Go back Below $4,800 in A Few Weeks

July 2, 2020
Amazon

Shop on Amazon and Pay with your Cryptocurrencies

March 1, 2021
CoinGecko to Enter Non-Fungible Token Space

CoinGecko to Enter Non-Fungible Token Space

0
Ethereum (ETH) and Ripple (XRP) Now Available to Trade on OTC Trading Desk of Coincheck Exchange

Ethereum (ETH) and Ripple (XRP) Now Available to Trade on OTC Trading Desk of Coincheck Exchange

0
Bitcoin SV

The largest Crypto exchange in the World Delists Bitcoin SV

0
Bitcoin Treasure Hunt

How World is Getting Ready For 1m Bitcoin Treasure Hunt

0
Explore Top Jobs & Opportunities in Growing Blockchain Industry

Explore top jobs & opportunities in growing blockchain industry

May 12, 2023
US crypto exchanges see rising trend of crypto lending and borrowing

The increasing trend of crypto lending and borrowing services on US-based crypto exchanges

March 29, 2023
How to Choose the Best Crypto Exchange in Australia?

How to Choose the Best Crypto Exchange in Australia?

February 27, 2023
Trading Bots gain popularity amidst the Crypto market recovery

Trading Bots gain popularity amidst the Crypto market recovery

February 21, 2023
BitcoinNewsUpdates

BitcoinNewsUpdates is offering quality news articles about world's most popular cryptocurrency - Bitcoin. Stay tuned with us to gain insight into the world of cryptocurrencies. We are the leading source to stay informed regarding world of Crypto.

Email: editor@bitcoinnewsupdates.org

Follow Us

Explore Top Jobs & Opportunities in Growing Blockchain Industry
Blockchain News

Explore top jobs & opportunities in growing blockchain industry

Crypto jobs are in high demand right now. There are countless opportunities for individuals like you to participate in developing ...

May 12, 2023
US crypto exchanges see rising trend of crypto lending and borrowing
Cryptocurrency News

The increasing trend of crypto lending and borrowing services on US-based crypto exchanges

Crypto lending and borrowing services are essentially banking services for the crypto community. A blend of growing interests and increased ...

March 29, 2023
How to Choose the Best Crypto Exchange in Australia?
Cryptocurrency News

How to Choose the Best Crypto Exchange in Australia?

Research and Compare Different Crypto Exchanges in Australia Like several other countries in the world, Australia has recently become a ...

February 27, 2023
Trading Bots gain popularity amidst the Crypto market recovery
Blockchain News

Trading Bots gain popularity amidst the Crypto market recovery

The cryptocurrency industry witnessed a substantial decline in 2022 by over 70% from the previous peak in November 2021. Bitcoin ...

February 21, 2023
MicroStrategy Buys 301 More Bitcoins, Worth $6 Million
Bitcoin News

MicroStrategy Buys 301 More Bitcoins, Worth $6 Million

Despite the ongoing market downturn, MicroStrategy has purchased a fresh batch of Bitcoin FOR $6 million. A $6 million purchase ...

September 21, 2022

Recent News

Explore Top Jobs & Opportunities in Growing Blockchain Industry

Explore top jobs & opportunities in growing blockchain industry

May 12, 2023
US crypto exchanges see rising trend of crypto lending and borrowing

The increasing trend of crypto lending and borrowing services on US-based crypto exchanges

March 29, 2023
How to Choose the Best Crypto Exchange in Australia?

How to Choose the Best Crypto Exchange in Australia?

February 27, 2023

Categories

  • Altcoin News
  • Bitcoin News
  • Blockchain News
  • Cryptocurrency News
  • Press Release
  • Price Analysis
  • About Us
  • Advertise
  • Contact Us
  • Editorial Policy
  • Privacy Policy
  • Team

Copyright © 2023. BitcoinNewsUpdates. All Rights Reserved.

No Result
View All Result
  • Altcoin News
  • Bitcoin News
  • Blockchain News
  • Cryptocurrency News
  • Press Release
  • Price Analysis

Copyright © 2023. BitcoinNewsUpdates. All Rights Reserved.