Bitcoin: Safe Haven Potential Amidst Market Volatility

The recent market volatility caused by tariffs has significantly impacted U.S. stocks, leading to instability. In contrast, Bitcoin has demonstrated remarkable stability, prompting interest in its potential as a safe haven asset. However, short-term declines are possible due to risks associated with ‘basis trading’ in the U.S. Treasury market, where bond prices have witnessed increased volatility. Analysts warn that a surge in the $1 trillion U.S. Treasury basis trade could trigger a global cash outflow, potentially leading to a sell-off of assets across the board, including Bitcoin. A similar scenario occurred in mid-March 2020, when the basis trade volume reached $500 billion.