Could Bitcoin gain land as a safe haven amid banking sector fears?

Bitcoin’s price movement and stock market performance have diverged as a result of the banking collapse and the turbulent events of the past week. Experts noted the split in Bitcoin and evaluated whether the asset would begin trading as a flight from danger.

Before correcting to the $25,100 mark, the price of bitcoin experienced a positive trend. The safe haven argument for bitcoin was no longer valid in 2022, the year of the previous bear market. the most recent gap between US stocks and the leading cryptocurrency by market capitalization. According to analysts, market players may have started trading BTC as a flight to safety.

Will Bitcoin make a comeback as a safe haven?
Market participants recall a time when Bitcoin served as a “safe haven” and inflation hedge, before US financial regulators began to crack down on cryptocurrency enterprises and institutions, and before crypto-friendly banks started to fail.

The idea that Bitcoin was a safe haven was disproved by the bear market of 2022 and Bitcoin’s rising correlation with US stocks and tech companies. The narrative is once again in play following the asset’s current upward trend and a nine-month high of $26,000 for the price of BTC.

A new asset correlation chart released on Twitter shows a significant difference between the price movements of Bitcoin and equities, but not for Gold, which also appears to have attracted interest.

By market value, the greatest asset has separated from the S&P 500 around March 13. The “safe haven” narrative is back in play as of this week, and Bitcoin gives speculators a break from US equity market corrections.