Bitcoin has been widely criticized in recent weeks. All of its fiercest opponents saw the sharp drop in its price on March 12, 2020 as the ultimate proof that Bitcoin is not a safe haven in times of crisis.
As is often the case, these opponents of Bitcoin have made the mistake, knowingly or unknowingly at your discretion, of jumping to conclusions in a very short period of time.
One cannot conclude about Bitcoin’s safe haven status in a day.
Similarly, it is not enough to see that Bitcoin fell on March 12, 2020 just like Wall Street or gold to conclude that Bitcoin is a correlated asset.
The best thing to do is to step back and look at the bigger picture. A one year period is a good start. As a matter of fact, Bitcoin price was $5,022 on April 4, 2019. At the time of this writing, Bitcoin price is $6,796. Over one year, Bitcoin price is therefore up 35%:
Bitcoin price has increased by 35% in one year
Over this one-year period, Bitcoin pricereached its highest level on June 26, 2019 at $13,426. Its lowest price was reached on March 13, 2020 at around $3,800. I say around here, because there was such panic on that day that the price differential between the trading platforms had reached record highs.
Bigger Picture Inspires Optimism for Bitcoin
Looking back over a period of one year, you can see that Bitcoin continues to outperform its direct competitors. Both the Dow Jones and the S&P 500 are showing strong declines.
Gold is doing well with a performance of +25%, but Bitcoin is doing much better with a performance of +35%.