Monday’s Price Action Undermines Bitcoin’s Claim To Haven Status

Monday’s Price Action Undermines Bitcoin’s Claim To Haven Status
Andrew Rummer

over 2 years ago1 min

Mentioned in story

Monday witnessed a classic “risk off” move in markets as Chinese property developer China Evergrande’s shaky finances spooked investors and prompted a flight from stocks to safer assets. Bitcoin wasn’t among them. 

The chart above shows trading over the course of Monday and the first few hours of Tuesday. As the S&P 500 dropped the most since May, investors bought gold and US government bonds (a.k.a. Treasuries). Yet they sold bitcoin with abandon. 

Bitcoin has plenty to recommend it: a place to stash funds where governments struggle to reach, an enabler of cross-border payments, and a speculative vehicle that’s managed to surge 10-fold since the peak of COVID panic in March 2020.

Just don’t expect the OG cryptocurrency to hold its value when investors lose their nerve and want to take a little risk off the table.



All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG