For some time now, many elements in the crypto industry have pushed that Bitcoin is a safe haven asset. Something that one should invest in, to ensure that you will keep your wealth safe in times of great trouble. With the rampant scare that the CORVID-19 virus has caused, stocks are going down, and haven assets are going up, but Bitcoin isn’t.
Going Back To The Classics
As investors once again flock to the traditional haven assets, tried and tested as they are, the gold markets enjoyed an impressive 2% rise on Sunday. A primary contributor to this is the profoundly troubling news that Chinese economic data had shown throughout the weekend. Bitcoin, in turn, behaved like it always does, without a marked difference that can be directly blamed on people seeking haven assets.
While China has suffered dramatically, the US Stock market, as well as the Dow, in particular, has started to drop like a stone in fear. The public opinion of the Coronavirus is one of complete terror, and the stock markets are crashing because of it.
An Unexpected drop
The price of Gold had a massive drop quite recently, but leave it to a world wracked in terror of a virus to bump it back up. Through the weekend, Gold managed to rise up an impressive 2.5%, standing currently at $1,605.50 per troy ounce.
Back on Friday of last week, the gold prices dropped in one of the worst showings in seven years, with a loss of value attributing to 4.7%. There has been no concrete evidence to support the reason why the market had crashed so hard, but it’s been blamed on margin calls thanks to an overall market slump. While it’s nothing substantial. It’s being pushed that this is at least part of the reason for the flash-crash.
CORVID-19 And Its Catastrophic Market Effect
Before this sudden flash-crash, Gold had enjoyed a massive rally stretching into weeks, thanks primarily to the enormous scare that CORVID-19 had caused throughout the world. Last week’s highest point for gold price stands at $1.691.70 per troy ounce within the New York trading circuits.
An asset that experienced a larger selloff than even gold this Friday is the less-popular precious metal, silver. The silver futures market, in particular, suffered a drop of 40c, or about 2.5%. After trading closed that Sunday evening, silver traded at $16.86 per troy ounce.
It feels like things will only get worse before it starts to get better, as the CORVID-19 virus has now spread to numerous countries across the globe. While the disease is bad enough, rampant fear-mongering across the media industry as a whole is only further compounding the crisis.