Bitcoin Re-Earning Its Safe Haven Status – With the recent collapse of Silicon Valley Bank and Signature Bank, the US banking sector is in turmoil, leaving investors wondering where to invest their money. Traditionally, Gold has been considered a safe haven, but the recent price movements of Bitcoin suggest that it may be re-earning its “safe haven” tag. In this article, we will explore the relationship between Bitcoin and Gold and analyze whether Bitcoin is a viable alternative to Gold amidst the current banking crisis.
Bitcoin’s Safe Haven Narrative Bitcoin was once considered a low-risk investment as it was believed to be immune to global financial market fluctuations. However, as the cryptocurrency market grew more volatile and increasingly correlated with the stock market, Bitcoin lost its safe haven status. Consequently, any significant economic event resulted in a corresponding change in BTC price. However, recent price movements show that Bitcoin is once again following Gold’s lead, with the two assets exhibiting similar recoveries.
Bitcoin Price Rise
Bitcoin’s price has surged by almost 18% in the last 24 hours, reaching over $24,000, which is a critical resistance level. This 18% rally has brought Bitcoin closer to breaching and flipping the resistance into support, marking a new year-to-date high and a nine-month high. Interestingly, Gold also took a hit but recovered soon after, and both assets’ trajectory seems to be aligned. The community’s expectation is for Bitcoin to continue mirroring Gold’s price movements, making it a good investment choice for those who prefer Gold over fiat.
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Safe Haven Narrative
Fakeout If the “safe haven” narrative turns out to be a fakeout, and Bitcoin price collapses due to excessive external pressure, the cryptocurrency could fall to $21,410, which is a critical support level. If the price slips below this level, it would invalidate the bullish thesis and push the price to $20,000.
The recent collapse of US banks has once again brought the question of safe investments to the forefront. Gold has always been a safe haven investment, but Bitcoin’s recent price movements suggest that it may be re-earning its “safe haven” tag. However, investors need to exercise caution and carefully assess the risks before making any investment decisions. If Gold purchases increase, Bitcoin will also experience positive momentum as investors try to protect their money from bank crises.
The recent collapse of US banks has left investors searching for safe investment options. Gold has always been considered a safe haven, but Bitcoin’s recent price movements suggest that it may be re-earning its “safe haven” tag. While Bitcoin’s price movements seem to be following Gold’s trajectory, it remains to be seen whether it will sustain this upward momentum. Therefore, investors must be cautious and carefully assess the risks before making any investment decisions.
What is the “safe haven” narrative of Bitcoin?
The “safe haven” narrative refers to the idea that Bitcoin is a secure investment or low-risk asset, believed to be unaffected by fluctuations in the global financial markets.
How has the recent bank failures impacted the crypto market?
The recent bank failures, including the collapse of Silicon Valley Bank and Signature Bank, have taken a toll on the crypto market, causing a decline in Bitcoin price.
Is Bitcoin now considered a safe haven asset once again?
Looking at the emerging pattern, it seems like Bitcoin price might have made it out unscathed, re-earning a much-talked-about tag as a “safe haven” asset.
How has the price of Bitcoin and Gold been moving?
Despite facing different challenges, the price movements of Bitcoin and Gold have been pretty in sync, with both assets recovering after a dip and trading close to their respective year-to-date highs.
Why are depositors being urged to put their money into Gold?
Following the collapse of Silicon Valley Bank and Signature Bank, depositors are being urged to put their money into Gold due to its reputation as a secure investment that has maintained its value over time.
What is the critical support level for Bitcoin?
The critical support level for Bitcoin is $21,410, and slipping below it would invalidate the bullish thesis, pushing the price to $20,000.