Has Bitcoin And Gold Failed In The 2020 Crisis?
The sudden outbreak of the COVID-19 pandemic earlier this year prompted numerous disturbances in everyday life and in financial markets.
March alone was among the worst trading months, with assets losing substantial portions of their values. Wall Street had to trigger trading curbs (circuit breakers) on several occasions to prevent further declines.
Bitcoin, being a free-market asset and lacking such regulatory instruments, had no assistance andlost up to 50%of its price at one point.
The devastating effects didn’t omit gold – the asset traditionally regarded as a safe haven. The price of the precious metal plunged from about $1,700 to $1,450 in days.
According to a report from the University of Sussex, events have rattled the perception of Bitcoin and even gold to operate as safe-havens during times of uncertainty.
The university’s research team blamed it on “intense and large-scale manipulations.”