The perception of Bitcoin as a safe haven is changing due to market downturns

From Cointelegraph
March 15, 2025 9:00 am:

Bitcoin, once considered a safe-haven asset, is now losing that reputation due to recent events like the global tariff war and economic reports causing market downturns. Comparing Bitcoin to gold, the Kobeissi Letter notes a -10% drop in Bitcoin since January 1st, while gold prices rose +10%. Market observers expected this shift, with some noting that Bitcoin was always more speculative than a true safe haven.

The perception of Bitcoin as a safe haven is changing, as it becomes more correlated with risky assets and is seen as a speculative asset rather than a digital equivalent of gold. Despite its acceptance by major financial players like BlackRock and Fidelity, Bitcoin’s future is uncertain due to increased institutional involvement and leverage. This narrative shift may impact Bitcoin’s role in the market.

Bitcoin’s dual nature as both a risk asset and a potential safe haven is evident in its price fluctuations and market behavior. Short-term volatility doesn’t negate its longer-term value against fiat currencies, as it has outperformed gold and US equities over four-year periods. Bitcoin may act as a hedge against certain financial events but still trades as a risk asset in geopolitically uncertain times.

Short-term market fluctuations and macroeconomic concerns are affecting Bitcoin’s price, with investors seeking the next major catalyst for a price run. Despite the current drawdown, many of Bitcoin’s fundamentals remain positive, including a pro-crypto US government and increased adoption. However, market uncertainty and conflicting narratives about Bitcoin’s role as a hedge or safe haven continue to impact its price and market behavior.

Read more at Cointelegraph: Trade war puts Bitcoin’s status as safe-haven asset in doubt