Bitcoin Decouples From Gold, Has it Lost Safe Haven Status?

Bitcoin Decouples From Gold, Has it Lost Safe Haven Status?

In yesterday’s market termoil, we found that Bitcoin is still not “Digital Gold” … yet. pic.twitter.com/Ww2ABhBLCP — Charles Edwards (@caprioleio) February 25, 2020

Naturally serial bitcoin basher and goldbug Peter Schiff couldn’t resist sticking his oar in despite BTC outperforming gold this year by 16%. It should be noted that these tweets generally appear to be posted solely to troll the crypto community. “It should be clear to Bitcoin bugs and CNBC anchors that Bitcoin is digital risk, not digital gold.”

Over the past 5 trading days the Dow Jones is down 7.3%, the NASDQ is down 7.9%, and The Grayscale Bitcoin Trust is down 22%. In contrast GLD, which tracks #gold rose by 1.6%. It should be clear to #Bitcoin bugs and @CNBC anchors that Bitcoin is digital risk, not digital gold. — Peter Schiff (@PeterSchiff) February 25, 2020

Granted gold has maintained gains in recent weeks and continues to build on bullish momentum. However, there is no denying that both stocks and digital assets have blitzed it in terms of performance this year, even with recent losses included. Bitcoin is still highly speculative so it stands to reason that prices will slump and volatility remains high when the world is in complete chaos. With entire cities being locked down fewer people are going to be thinking about trading digital assets, and it has a fraction of the market cap that gold has anyway. Gold has always been a favorite for institutional investors who generally prefer more stability in their trades. This does not mean that BTC is no longer a safe haven, but only that it has yet to gain the momentum of more established assets when markets are in utter turmoil. Has BTC lost its digital gold status? Add your comments below. Image from Shutterstock

 

source: https://bitcoinist.com/bitcoin-decouples-from-gold-has-it-lost-safe-haven-status/

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