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Bitcoin ($BTC) continues to compete with gold, which has long proven itself as a safe-haven asset.
However, while gold has proven itself as a safe haven, the same is not yet true for Bitcoin. Some analysts argue that $BTC is also a safe haven, while others maintain that it still needs time.
At this point, on-chain analyst Willy Woo noted that most Bitcoin holders view $BTC as a safe-haven asset, but the reality is more complex.
Willy Woo said that $BTC needs at least 10 years to be seen as a safe-haven asset.
According to Woo, it could take at least 10 years for Bitcoin to be accepted as a safe-haven asset.
According to Woo, Bitcoin has safe-haven characteristics: “It can transcend borders, it can be restored with a mnemonic device in times of conflict, it is theoretically independent of the traditional financial system, and it could be beneficial if that system collapses.”
However, during periods of uncertainty or war, Bitcoin behaves more like a riskier asset and is highly sensitive to market sentiment.
In a recent blog post, Woo noted that Bitcoin remains highly sensitive to market volatility during periods of macroeconomic uncertainty or war. He attributed this largely to the fact that institutions and other large-scale capital investors don’t yet see it as a sufficiently proven asset. According to Woo, large funds don’t fully accept Bitcoin’s safe-haven characteristics, viewing it as too new and lacking long-term validation.
Woo added that this situation caused the $BTC price to move in a manner similar to the Nasdaq.
Woo believes that Bitcoin may need 10 years or more to gain widespread market acceptance as a safe haven. If this milestone is reached, its market capitalization could rival that of gold.
*This is not investment advice.