Bitcoin has offered significantly higher returns than traditional safe-haven assets like gold, U.S. bonds, or the dollar.
Data from Paris-based crypto analytical platform Kaiko showed that an investment in the top cryptocurrency in January last year would have yielded more than 100% returns, while similar investments in gold and other assets would have generated considerably lower returns during the same period.
![Bitcoin vs gold](https://cryptoslate.com/wp-content/uploads/2024/01/GEhNee6WwAACWLw.jpg)
“Overall, BTC offers significantly higher returns than other traditional safe-havens such as gold, U.S. bonds or the dollar. It has notably outperformed, attracting safe-haven flows during the U.S. banking crisis last year,” Kaiko wrote in its recent research report.
The firm described a safe haven asset as uncorrelated with equities during market turmoil.
BTC’s 60-day correlation with the Nasdaq 100 has significantly declined in the past year, further bolstering the top asset image as a safe haven asset.
“[BTC correlation with Nasdaq 100] has been close to zero on average since June of 2023 as BTC price movements have been driven by the hype around spot U.S. ETFs,” Kaiko stated.
![Bitcoin Correlation](https://cryptoslate.com/wp-content/uploads/2024/01/GEhNPaNW4AATvq9.jpg)
The growing investors’ interest in Bitcoin as a reliable safe-haven asset has been further propelled by influential institutional entities like BlackRock, who increasingly recognize the digital asset’s safe-haven characteristics.
Notably, a CryptoSlate report also confirmed this market dynamics. The report observed a BTC/GOLD ratio growth, showing that investors increasingly preferred BTC over gold because of its perceived attributes as a digital store of value and a hedge against inflation.
Meanwhile, Kaiko’s analysis follows BTC’s recent price struggles below $40,000 despite introducing several spot exchange-traded funds (ETF) in the U.S. However, according to CryptoSlate, the top cryptocurrency’s value has risen by more than 3% during the past day to around $41,150 as of press time.
The post Bitcoin’s safe-haven status strengthened despite recent price crisis: Kaiko appeared first on CryptoSlate.