Many crypto investors flee to Bitcoin (BTC) as a safe haven, but they don’t work particularly well during wartimes. Consider slower performance over other technology investments during the onset of a conflict.
The conflict continues despite President Donald Trump’s 53 assurances that the Russian-Ukraine war will end on the “first day.”
What’s worse, a new war has just begun in Iran.please give us a recent example for analyzing BTC. As an outwardly safe haven.
BTC is often correlated with the NASDAQ-100 index, the largest proxy in the tech industry. However, many military headlines have driven the BTC to separate it from the Nasdaq into shortcomings.
On Monday, for example, Trump surprised the world with a sudden post to the True Society, asking everyone in Tehran to quickly evacuate. The plea, which led to the metro area of over 15 million people at 6:30pm in New York, quickly tanked the Nasdaq 100 components in an after-hours deal.
The NASDAQ 100 tracking QQQ ETF, which traded north at $533.70 before the announcement, traded 0.15% lower within two minutes and 0.6% lower within 90 minutes.
These percentages should not be misunderstood as insignificant. For an index of the same size as the NASDAQ (it itself is linked to the world’s largest economy), a 0.6% loss reflects almost the loss $300 billion Public market capitalization in the United States.
However, BTC was much worse over the same period.
Before Trump’s announcement, BTC was trading above $108,700. It fell by 1.8% within 90 minutes.
surely, BTC is three times lower than Nasdaq Within 90 minutes after the conflict occurs.
BTC doesn’t seem to be a safe haven
The same effect of BTC separation from the Nasdaq during wartime headlines occurred at the start of the Russian-Ukurein conflict.
On the evening of February 23, 2022, Vladimir Putin announced a “special military operation” against Ukraine.
By 9:30am on the NASDAQ 100, by the time it began trading on February 24, 2022, the index crashed an astounding 3.2%.
But BTC performed even worse than this epic incineration, which is more than $1 trillion in US public market capitalization. By the morning of February 24th, BTC had surpassed its previous day’s high by 10%.
Again, this episode shows BTC performing Nasdaq with a 3x multiplier.
Read more: No, California did not pass laws to grab your idle bitcoin
There are many more examples of BTC that do not support investors seeking safe shelters. From the crisis in India and Pakistan earlier this year to the incident in late 2010 of a military strike in the South China Sea, BTC has not functioned effectively as a hedge.
Instead, BTC often reflected or amplified the movement of risk-on assets during the wartime crisis.
