Several years back, many in the crypto community described Bitcoin as a “safe-haven” asset. Fewer are calling it that today.
A safe-haven asset maintains or increases in value in times of economic stress. It can be a government bond, a currency like the US dollar, a commodity like gold, or even a blue-chip stock.
A spreading global tariff war set off by the United States, as well as troubling economic reports, have sent equity markets tumbling, and Bitcoin too — which wasn’t supposed to happen with a “risk off” asset.
Bitcoin has suffered compared with gold, too. “While gold prices are up +10%, Bitcoin is down -10% since January 1st,” noted the Kobeissi Letter on March 3. “Crypto is no longer viewed as a safe haven play.” (Bitcoin dropped even further last week.)
But some market observers are saying that this wasn’t really unexpected.
Bitcoin (white) and gold (yellow) price