Not So Safe Haven? Signs Suggest Bitcoin Might Still Be a Risk Asset

Volatile price swings and plummeting valuations have been a reality for bitcoin investors of late, but those who own traditional equities haven’t been immune either.

In fact, bitcoin and the S&P have correlated on and off for almost a year, each taking turns as the leading indicator. Bitcoin, the cryptocurrency advertised as digital gold due to its difficult means of production and limited supply, is expected by some to act as a “safe haven asset,” one that rises or remains stable in times of economic turmoil (just as its metal companion traditionally has).

To date, though, rarely has that been the case.

Since Oct. 10, both bitcoin and equities markets have taken a notable plunge, and interestingly enough, to around the same degree. The S&P 500, the benchmark for equities worldwide, at its lowest point of the day of $2,710 market a 5.69 percent loss from the opening price of the day prior.

Similarly, bitcoin’s low yesterday of $6,205 marks a similar 6.7 percent depreciation…