As Israel, Iran Tensions Rattle Markets, Will Bitcoin Act as a Safe Haven?
AI summary of the linked articleBitcoin fell 3.2% to $61,300 on Tuesday amid Iranian missile strikes on Israel, its lowest price in two weeks, though it recovered to $62,200 by the time of writing. Grayscale's Managing Director of Research Zach Pandl said Bitcoin has not consistently performed as a flight-to-quality asset during geopolitical conflict, and that investors were still turning to physical gold and U.S. Treasury bonds. Bitwise's André Dragosch said Bitcoin has historically performed relatively well after major geopolitical risk events and that "geopolitical news should generally be faded." Dragosch also cited his research with ETC Group finding outsized Bitcoin returns after past geopolitical events. |
4 comments  hahahah well it is a bit strange that only crypto tanked. The S&P500 didn‘t seem to panic sell on the news, so it seems AI isn‘t affected by middle eastern war 🤷♂️ mishaSubmitter You might question BTC status as a safe haven, maybe it is more of an alternative to traditional finance rather than a reliable store of value. Actually performance often aligns more with risk-on assets, where investors are willing to take on more risk in pursuit of higher returns. When a crisis comes those are the first to be sold-off as investors may move towards traditionally safer assets like gold, bonds, or currencies perceived as safe havens. well well well, that is a frameing question. I‘ve read someone argue that BTC is the most liquid asset because anyone globally can just dump it to get fiat so it is the earliest to reflect real price whereas other assets are harder to pass onto others because of regulation, logistics, contracts etc. It is, of course, a risk asset too. |
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