So, is Bitcoin a safe haven from market turmoil? There's no definitive answer- not yet. Sometimes it acts like one; most of the time, it doesn’t. Writes Apollo Sande, Country Manager for Luno Kenya
Bitcoin has hit a new all-time high of over US$ 126,000 in October, and this time, with less hype than in previous cycles. The more compelling story lies in how Bitcoin performs relative to traditional markets during periods of stress.
At times, Bitcoin has outperformed U.S. equities during bouts of heightened volatility. While major indices like the S&P 500 fell, Bitcoin occasionally rose- suggesting brief moments of decoupling between crypto and traditional markets.
Although both markets generally react to major policy shifts and economic uncertainty, these moments of divergence hint at Bitcoin’s emerging role as a hedge against systemic risk. Analysts note that as individuals, corporations, and even central banks begin to view Bitcoin as a sovereign store-of-value asset, its correlation with equities may continue to weaken.
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Still, these episodes are often short-lived. Bitcoin usually trades like a high-beta tech stock- moving in the same direction as equities but with sharper swings. Yet, during geopolitical or macroeconomic uncertainty, it has occasionally moved to its own rhythm, showing resilience while stocks slump. Such behaviour tends to attract institutional investors seeking assets that behave differently when markets turn volatile.
As adoption grows, access and trust remain critical to navigating this evolving market. Platforms like Luno have played an important role in bridging that gap, offering investors in markets like Kenya a secure environment to buy, hold, and sell Bitcoin and other crypto assets. By making crypto investing more transparent and accessible, they’re helping to shape a more informed class of investors who view Bitcoin not just as a speculative asset, but as part of a broader financial strategy.
So, is Bitcoin a safe haven from market turmoil? There's no definitive answer- not yet. Sometimes it acts like one; most of the time, it doesn’t.
Visit Luno to explore more investment opportunities.
*This information should not be construed as financial advice or as a solicitation to trade. All opinions and information provided are for informational purposes only.
