{"id":416116,"date":"2020-02-26T16:00:56","date_gmt":"2020-02-26T16:00:56","guid":{"rendered":"https:\/\/wncen.com\/?p=416116"},"modified":"2024-06-11T12:42:07","modified_gmt":"2024-06-11T12:42:07","slug":"gold-coronavirus-bitcoin-safe-haven","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/gold-coronavirus-bitcoin-safe-haven\/","title":{"rendered":"Has the Coronavirus Put an End To the Bitcoin Safe Haven Narrative?"},"content":{"rendered":"

Bitcoin price<\/a> had been soaring over the last two months, reaching over 60% ROI year to date. But recent fears over the coronavirus has caused markets to tank, including the stock market and the crypto industry.<\/span><\/p>\n

Meanwhile, gold<\/a>, the safe-haven asset investors flee to during times of economic distress has been skyrocketing. Does the divergence between gold and its digital counterpart following the coronavirus scare that put an end to the Bitcoin as a safe haven narrative?<\/span><\/p>\n

Coronavirus Concerns Cause Major Financial Market Scare<\/h2>\n

The coronavirus is spreading rapidly, and even the CDC is warning<\/a> that the virus reaching the pandemic level may be inevitable.<\/span><\/p>\n

But possibly worse than the pandemic and virus itself, is the impact it is having on the global economy.<\/span><\/p>\n

Related Reading | Coronavirus Fear Shakes Up Markets, But Crypto Remains Unaffected\u00a0<\/a><\/strong><\/em><\/p>\n

Global stock markets have been tanking<\/a>, closing out some of the largest losses in over a year. <\/span><\/p>\n

Transportation is affected, and production facilities around the world \u2013 notably in the manufacturing epic-center of China \u2013 have been shut down.<\/span><\/p>\n

Worst of all, fear, uncertainty, and doubt are causing the global community at large to absolutely panic over the potential implications of the pending pandemic. <\/span><\/p>\n

That fear has spilled into cryptocurrencies an asset class where its investors were just days ago talking about new all-time highs and picking out the color of which Lamborghini<\/a> or Tesla they were interested in buying.<\/span><\/p>\n

But once the stock markets began to plummet, crypto investors took a moment for pause, wondering if their high-risk, speculative asset could fall just like stocks backed by tangible fundamentals did.<\/span><\/p>\n

And fall it did. Bitcoin dropped from highs of around $10,500 to as low as under $9,000<\/a> as of the time of this writing. With fears over the coronavirus and how it could further decimate the global economy, the crypto market selloff may continue.<\/span><\/p>\n

Meanwhile, gold<\/a>, a flight of safety for investors throughout the ages, has been rising in value as investors fear a recession ahead.<\/span><\/p>\n

Has the Pandemic Put an End to Bitcoin as a Safe Haven Asset?<\/h2>\n

Bitcoin<\/a>, the digital counterpart to gold, spent the better portion of 2019 rising alongside the precious metal, fueling a \u201cBitcoin as a safe-haven narrative\u201d that is still widely discussed today.<\/span><\/p>\n

But with gold reaching new highs, but Bitcoin and other crypto-assets falling like traditional stocks, that safe haven narrative may need to be put to rest.<\/span><\/p>\n

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During the recent global stock market rout investors dumped risk asset and fled to their safe haven of choice. #Bitcoin<\/a> not only followed risk assets lower, but led the decline. How can an asset that falls more than risk assets during market declines be considered a safe haven?<\/p>\n

— Peter Schiff (@PeterSchiff) February 26, 2020<\/a><\/p><\/blockquote>\n