Bitcoin As A Safe Haven Asset?

Risk Gives Way To Stability

Bitcoin, once the world’s most volatile asset, seems to be gaining greater trust amongst investors. The Bitcoin price has been steadily rising since September 2022. In fact, if Bitcoin were to remain faithful to past performance, a bear market would now be looming. However, many believe this to be an unlikely outcome.

The death of the 4-year cycle is an idea I have addressed in recent articles. If Bitcoin edges higher or remains stable, then we could consider this a likely scenario. This cycle appears to be lasting significantly longer than the previous one. This could indicate a shift and a move away from cyclical behavior.

The halving will always affect the price. However, the downside could become limited as more and more investors choose the asset. This could ultimately lead to Bitcoin becoming a safe-haven asset. It seems crazy to consider, given Bitcoin’s track record. However, once mature, Bitcoin could become an entirely different creature.

Final Thoughts

It’s important to note that even if the 4-year cycle were to soften, a shift to a safe-haven asset is likely still years away. This won’t be an overnight adjustment. However, if Bitcoin remains on the right road, we could see Bitcoin in an entirely different light years from now. All the best, see you next time!

Disclaimer

First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in my receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.

This article was first published on Sapphire Crypto.

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