Bitcoin regains ‘safe haven’ status as even Pound is more volatile

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Last Updated on 25 October 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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A recent analysis by Bank of America concluded that Bitcoin’s recent low volatility spell means it is becoming a ‘safe haven’ again, after a few years (2020-2021) where it traded as a high risk asset. Bitcoin has been trading in a very narrow $19,000 to $22,000 band for most of the past two months.

Investors are viewing the world’s largest cryptocurrency as a relative safe-haven amid macro uncertainty.

Declared analysts at Bank of America.

Advertentie.

Digital gold

Crypto supporters have always claimed that Bitcoin should be seen as some form of ‘digital gold’ because of its scarcity. By now, it is once again in line to become a safe haven asset and a hedge against inflation with the possibility of replacing gold, as a report by Bank of America concludes.

The world’s biggest cryptocurrency has seen increased correlation with gold in recent weeks.

Clara Medalie, head of research at crypto research group Kaiko commented that:

We could be seeing a slight decoupling of crypto and equity markets, which is reflected in Bitcoin’s rising correlation with gold.

British Pound

Another proof for Bitcoin’s low volatility is the fact that even Bloomberg’s graph showed just a few days ago that the British Pound, for hundreds of years the investment security of choice for emperors and kings, was now more insecure as an investment than Bitcoin in the past few weeks.

Or as Rishi Sunak, the new British Prime Minister, would say: Oh dear.

Belish / Depositphotos.com