In order for Bitcoin to establish itself as a safe haven, it would have to cushion sales on the stock market. But he does not.
(Photo: Reuters)
Dusseldorf In the course of the year, a narrative has established itself on the financial market: Bitcoin is “a safe haven”. The cryptocurrency would therefore offer investors protection in times of crisis. But when the news of a new corona variant spread on Friday, this protection did not take effect: The Bitcoin price collapsed with the stock markets and fell by more than six percent.
“It dealt a fatal blow to the safe haven reputation,” said Craig Erlam, senior market analyst at OANDA. Because for Bitcoin to establish itself as a safe haven, it would have to cushion sales on the stock market.
But it doesn’t do that: Even during the corona crash, Bitcoin lost 26 percent of its value within three weeks and thus performed only marginally better than the market-wide US S&P 500 index, which lost around 28 percent in value over the same period.
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