ANNOUNCEMENT! We're excited to share that The Block Pro, a portfolio of research, news and data products in one easy-to-use platform, launches later this month. Reach out to your account manager for more information about products and subscription options.
Amidst a coronavirus-driven sell-off, Bitcoin is clearly not serving as a safe haven
The bond market and the possibility of global growth contracting significantly in the 2Q has many expecting the Fed to step in and cut rates — causing some to suggest this is favorable for bitcoin
In 2019, The Block found no discernible positive impact on the returns of bitcoin when rates were cut, over a 1-week, 1-month, 3-month return lag
Since 2013, we found over 57 observations where at least 2/3 of a haven asset basket (gold, yen, U.S. Treasuries) saw a daily outsized return
Among those days, bitcoin also saw an outsized daily move on ~20% of those observations
If anything, bitcoin is acting less as a haven asset, as 80% of shared outsized moves with other havens have come before 2018
Footnotes
Join The Block Research for exclusive research like this
Gain access to this research piece and 100s of others, including ecosystem maps, company profiles, and topics spanning DeFi, CBDCs, banking and markets. Together with additional services, we help organizations understand what’s happening in the rapidly developing digital asset ecosystem.
