When a crisis hits, investors move their capital into safe-haven assets like gold and silver. Bitcoin shares similar attributes as these precious metals, and a growing narrative suggesting it too will become a safe haven asset like gold has followed the asset over the last two years.
However, growing fears and concerns over the coronavirus reaching pandemic status, and the impact it is having on the economy and humanity itself, has caused even the strongest of safe-haven assets to collapse. And the blow to Bitcoin may have ended the safe haven narrative permanently.
Silver, Gold, and Bitcoin Come Collapsing Down After Coronavirus Reaches Pandemic Status
As the economy has inched closer to a recession over the last several years, investors have been slowly preparing for the inevitable by moving their money from stocks to gold, silver, and other more stable assets.
And while Bitcoin is anything but stable, the asset sharing important attributes with these precious metals has caused a safe haven narrative to surround the asset since the start of 2019, when the cryptocurrency began rising alongside gold.
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However, after last night’s failure from the United States President Donald Trump to ease the public’s concerns over the spread of the pandemic and the latest developments around the virus have struck the film industry, sports, and travel.
Following a late-night update on the coronavirus from Trump, Dow futures began to plummet, kicking off a panic-induced selloff across the greater finance market.
The selloff didn’t just hit stocks, it caused gold and silver – the two main safe-haven assets – to suffer severe losses.
Bitcoin suffered even worse, setting a lower low and smashing through the asset’s logarithmic growth curve and a seven-year-long bull market trend line.
The young crypto asset’s future is now in jeopardy, and if gold and silver which have served as a store of wealth, currency, and safe haven for ages can’t withstand the coronavirus and the stock market selloff, then neither will Bitcoin and the rest of the crypto market.
Related Reading | Is the Coronavirus The Black Swan Event That Crushes Cryptocurrency?
As for what may bring relief to the markets, only a vaccine as this point will be enough to ease concerns, however, experts say that may be weeks, months, or even a year away.
With markets in total collapse and an end nowhere in sight, this recession may end up being the worst the world has ever witnessed.
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