Summary of studies on Bitcoin and its safe-haven properties
| Studies | Considered assets | Key findings |
|---|---|---|
| Terraza et al. (2024) | Bitcoin, Gold, and US stock indexes | Bitcoin offers better diversification opportunities for the stock market during the COVID-19 pandemic than before |
| Feder-Sempach et al. (2024) | Bitcoin, Gold, the European euro, the Japanese yen, and the Swiss franc | Bitcoin is not a strong safe-haven currency due to its negative correlation to stock indices, but serves as a weak safe-haven during times of financial distress |
| Colon et al. (2021) | 25 cryptocurrencies | The cryptocurrency market can serve as a strong hedge against geopolitical risks in most cases, but acts as a weak hedge and safe-haven against economic policy uncertainty during a bull market |
| Bedowska-Sójka and Kliber (2021) | Bitcoin, ether and Gold | Gold is found to be a strong safe-haven, while Bitcoin and Ether serve as weak safe-havens |
| Guesmi et al. (2019) | Bitcoin, MSCI emerging markets index, MSCI global market index, the European euro, the Chinese yuan, Gold, oil, VIX | The Bitcoin market allows hedging the risk of investments for various financial assets. Hedging strategies involving Bitcoin, Gold, oil, and emerging stock markets reduce a portfolio’s risk |
| Urquhart and Zhang (2019) | Bitcoin and world currencies | Bitcoin acts as a safe-haven during periods of extreme market turmoil for CAD, CHF, and GBP, but does not act as an intraday hedge, diversifier, or safe-haven |
| Smales (2019) | Bitcoin | Bitcoin is unable to act as a safe-haven during financial crises |
| Wang et al. (2019) | 973 cryptocurrencies and 30 indices | Cryptocurrencies are a safe-haven but not a hedge |
| Klein et al. (2018) | Bitcoin and Gold | Gold acts as a safe-haven during market distress, while Bitcoin behaves in the opposite direction |
| Studies | Considered assets | Key findings |
|---|---|---|
| Bitcoin, Gold, and US stock indexes | Bitcoin offers better diversification opportunities for the stock market during the COVID-19 pandemic than before | |
| Bitcoin, Gold, the European euro, the Japanese yen, and the Swiss franc | Bitcoin is not a strong safe-haven currency due to its negative correlation to stock indices, but serves as a weak safe-haven during times of financial distress | |
| 25 cryptocurrencies | The cryptocurrency market can serve as a strong hedge against geopolitical risks in most cases, but acts as a weak hedge and safe-haven against economic policy uncertainty during a bull market | |
| Bitcoin, ether and Gold | Gold is found to be a strong safe-haven, while Bitcoin and Ether serve as weak safe-havens | |
| Bitcoin, MSCI emerging markets index, MSCI global market index, the European euro, the Chinese yuan, Gold, oil, VIX | The Bitcoin market allows hedging the risk of investments for various financial assets. Hedging strategies involving Bitcoin, Gold, oil, and emerging stock markets reduce a portfolio’s risk | |
| Bitcoin and world currencies | Bitcoin acts as a safe-haven during periods of extreme market turmoil for CAD, CHF, and GBP, but does not act as an intraday hedge, diversifier, or safe-haven | |
| Bitcoin | Bitcoin is unable to act as a safe-haven during financial crises | |
| 973 cryptocurrencies and 30 indices | Cryptocurrencies are a safe-haven but not a hedge | |
| Bitcoin and Gold | Gold acts as a safe-haven during market distress, while Bitcoin behaves in the opposite direction |
Sharing content requires targeting cookies to be enabled. Please update your cookie preferences to use this feature.