Is Bitcoin Really Losing its ‘Safe Haven’ Status?
- Bitcoin weathering the biggest crisis since the Great Depression, which caused a severe economic crisis in the 1930s.
- Willy Woo tweeted about Bitcoin visualizing its fall in price by 50% in comparison with Gold and S&P 500 in a bigger run.
Willy Woo, who is a famous cryptocurrency analyst, a blogger who blogs about cryptocurrency at Woobull.com, describing himself as a nomad and entrepreneur recently tweeted about Bitcoin visualizing its fall in price by 50% in comparison with Gold and S&P 500 in a bigger run.
He tweeted that this was the Bitcoin weathering the biggest crisis since the Great Depression, which caused a severe economic crisis in the 1930s. Further tweeting he said it is Bitcoin’s first test of its safe haven properties.
Twitterati’s Ranging Response on Willy’s Perception
Several people re-tweeted on this tweet saying that the graph is imaginative since the S&P 500 hasn’t fallen 46% yet.
Willy Woo commented on this saying that there is a correction that S&P500 is down by 31 percent. Explaining the chart, he said that the charts were on a log scale, so percent changes up or down were proportional within the same spark-line. What the chart showed in the tweet was how much it dropped in relation to its normal growth.
People also replied that Bitcoin will not destroy the current currency, but has the ability to solve the structural imbalance of liquidity. A Bitcoin enthusiast re-tweeted this post saying he wouldn’t take advice and trust Willy Woo’s analysis whose fund got wiped out, with further downside the retrace will be more significant.
Coronavirus Outbreak Shake the Cryptosphere
Due to the coronavirus outbreak, we have seen a decline in Bitcoin’s price by 12% in the first quarter of 2020, exceeding S&P500’s 23% decline while Gold , the classic safe haven asset in these hard times added over 4% during the first three months of 2020.
With a steep drop, its price came down to $3850 on 12th of March. During these last weeks, the price of Bitcoin has climbed up by 87%. Even though its fall was in sync with the fall of stock markets up until 12th of March, the cryptocurrency disconnected itself from the S&P 500 trend.
Bitcoin outperformed gold and the S&P 500 over the last year, according to analysts, but the digital currency is still notoriously volatile, experiencing very strong gains in 2017, only to be followed by sharp losses.
But this has been a relatively stable week, as BTC has been fluctuating between $6000 and $7300, which opens the door to $8000.
These figures suggest that Bitcoin is gradually earning its place among the hearts of cryptocurrency enthusiasts as a sensible risk as an investment in both institutional and retail investor portfolios.