BITCOIN -STRESS- BITTING : SAFE HAVEN

 

Bengaluru : As crisis stalks the traditional world stocks and bonds, bitcoin is suddenly looking like a safe haven.

The infamous volatile cryptocurrency seems positively hale and hearty, just as a banking meltdown drives markets into the arms of a recession.

BITCOIN has risen 21% this month, while a choppy S&P 500 has lost 1.4% and gold has gained 8%.

''If you were going to describe an environment where there were successive bank runs because central banks are trying to fight inflation with fast rate increases, that is pretty close to as spot-on a thesis for owning bitcoin as you've ever heard,'' said Stephane Ouellette, CEO FRNT Financial.

The cryptocurrency has, for now, severed its ties with stocks and bonds and tagged on to a rally in gold, fulfilling at least one part of creator Satoshi Nakamoto's dream - that bitcoin can serve as a refuge for suffering investors.

Bitcoin's 30-day correlation with the S&P 500 slid to negative 0.12 over the past week, where a measure of 1 indicates the two assets are moving in lock step.

It remains to be seen if bitcoin's bullishness will endure as attention shifts to the Federal Reserve's policy meeting this week. [Reuters]