A safe haven asset retains its value or appreciate over time making it a good hedge against inflation and stock market turmoil. However, Risk assets tend to fall during a crisis. Stocks are considered risky while Bitcoin is considered a safe haven asset because its supply is capped. Recent events are proofing that theory wrong as Bitcoin falls together with stocks. During the 2020 pandemic induced recession Bitcoin fell along side with stocks. When Russia invaded Ukraine, it triggered global stock market selloff as investors feared higher energy prices my result to a recession. Bitcoin fell together with stocks.
The strategy is to sell Bitcoin during global crisis or when the economy experiences a slowdown and the stock market falls.#OPINIONLEADER#
Disclaimer: The views expressed are solely those of the author and do not represent the official position of Followme. Followme does not take responsibility for the accuracy, completeness, or reliability of the information provided and is not liable for any actions taken based on the content, unless explicitly stated in writing.
Leave Your Message Now