Is Bitcoin a Safe-Haven Asset? The Narrative Shifts after 8 Months of COVID

 

As COVID-19 has gripped global society for the better part of a year, the future of the global economy is increasingly uncertain. As such, investors aroun the globe have increasingly sought new methods of protecting the value of their funds.

A number of analysts believe that this is a major contributing factor to the rise in the price of Bitcoin over the past several months. After struggling for months to break through the $10,000 mark, BTC has rallied through a stunning bull run: in just a few months’ time, BTC has risen from around $10,000 to over $18,000 (and climbing.)

However, while economic uncertainty does appear to have driven interest in Bitcoin as an alternative asset, Bitcoin’s status as a true ‘safe-haven’ or ‘reserve’ asset is debatable at best.

After all, the market cap of Bitcoin is just $3.38 billion, and, as Blockchain.com research head Garrick Hileman told Finance Magnates earlier this week, “Bitcoin will likely need to reliably hold a value in excess…


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