Safe-Haven Performance in the Age of Bitcoin

Maniff, Jesse Leigh; Minhas, Sabrina; Rodziewicz, David; Ruiz, Rebecca

Journal Article

Safe-Haven Performance in the Age of Bitcoin

Abstract: In past periods of financial stress, investors seeking “safe havens” have shifted toward government bonds and gold. In recent years, some have questioned whether Bitcoin could also serve as a safe haven. We compare the behavior of government bonds, gold, and Bitcoin from January 1995 through February 2020 and find that the 10-year Treasury note behaved like a safe haven consistently, gold occasionally, and Bitcoin never. During March 2020, however, none of the assets can be classified with confidence as a safe haven.

Keywords: Bitcoin; Gold; Treasury Notes; COVID-19; Financial Stress; Government Bonds;