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Bitcoin’s Safe Haven Status Further Solidified During the Pandemic
Despite shocks to global financial markets, Bitcoin has been able to weather the storm and continue to grow in adoption
No financial market or asset has been spared during the pandemic
The coronavirus pandemic has done significant damage to economies around the world and the global economy is now expected to contract by 3% this year according to the International Monetary Fund. With many countries like the United States already due for a recession, the pandemic has now accelerated its arrival with many economists saying we already are in a recession here in the U.S.
Such a grim economic outlook and the continued closure of businesses has wrecked havoc on equity markets with the Dow Jones falling 11,000 points from its all-time high of around 29,500 (a whopping 37% decline) in the month of March alone. Demand for commodities like oil have dropped significantly with futures prices turning negative for the first time in history. Even gold, the go-to safe haven asset, wasn’t immune from the economic shocks in March, dropping from $1680 per ounce to $1480 per ounce.
