Bitcoin Is Emerging as a Safe Haven in Times of Crisis
A more interesting thing to observe is the behavior of Bitcoin since the beginning of this global health crisis started in China. During periods of uncertainty, the gold market usually rises.
Gold has played the role of a safe haven for decades.
The evolution of the price of an ounce of gold over the month of January 2020 totally confirms this:
The gold price rose as soon as the risk of war between the United States and Iran increased.
At the beginning of the coronavirus crisis on 23 January, gold price reacted upwards again while the world’s financial and stock markets reacted downwards.
Bitcoin is often described as a global store of value by its defenders.
The study of the evolution of Bitcoin price over the month of January 2020 and its comparison with gold price seems to confirm this hypothesis:
At the height of the recent crisis between the United States and Iran, the price of Bitcoin rose from $6,900 to just over $8,300, an increase of more than 20%.
At the start of the coronavirus crisis last week, Bitcoin had a price in the $8,300 range.
A little less than a week after the beginning of this crisis, Bitcoin saw its price reach $9K, an increase of a little less than 10%.
Bitcoin is well on its way to establishing itself as a safe haven in times of crisis in the same way as gold.
Published at Wed, 29 Jan 2020 21:13:19 +0000
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