Bitcoin's Safe Haven Status Challenged by Historical Market Trends

CoinDesk examined historical market trends to understand how safe assets compete with risk in Bitcoin and stocks.

In the 1960s-90s, investors sought refuge from inflation in gold, which appreciated by 6% per annum. The same phenomenon occurred when interest rates rose in the 1970s, causing a 'flight to quality' in US Treasury bills.

Bitcoin's correlation with stocks has increased over time, making it less of a safe haven. However, some experts argue that its store-of-value properties could still attract investors during economic downturns.

CoinDesk notes that the comparison is imperfect and should be viewed as a rough guide rather than a precise prediction.