Safe haven or risky hazard? Bitcoin during the Covid-19 bear market.

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2020
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Abstract
The Covid-19 bear market presents the first acute market losses since active trading of Bitcoin began. This market downturn provides a timely test of the frequently expounded safe haven properties of Bitcoin. In this paper, we show that Bitcoin does not act as a safe haven, instead decreasing in price in lockstep with the S&P 500 as the crisis develops. When held alongside the S&P 500, even a small allocation to Bitcoin substantially increases portfolio downside risk. Our empirical findings cast doubt on the ability of Bitcoin to provide shelter from turbulence in traditional markets.
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conlon2020safefinance Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Conlon, Thomas;McGee, Richard;
Journal finance research letters
Year 2020
DOI
10.1016/j.frl.2020.101607
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