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  •  Kling doubts whether Bitcoin is ready to assume safe-haven responsibilities like its peers such as gold.
  • Kling did note Bitcoin’s admirable performance during the US-China trade war fiasco.

Travis Kling, founder and CIO of Ikigai Asset Management, believes that Bitcoin is not acting as a safe-haven asset as fears of recession shadows over the US economy. He referred to Bitcoin’s dwindling price action against an already gloomy macroeconomic outlook. Kling doubts whether Bitcoin is ready to assume the responsibility like its well-established peers, like gold. He said:

“It’s like maybe BTC is strong enough to swim in the pool right now but not in the ocean.”

These statements came after the Dow Jones recorded its worst performance of the year over a 24-hour timeframe. The index tanked by 800 points, prompting investors to flee to safety in traditional hedging assets like bonds, gold, or even Japanese Yen. Around the same time, Bitcoin was seen as an unnerving asset by these investors.  

Many people, including Kling, noted Bitcoin’s admirable performance during the US-China trade war fiasco. However, he feels that the cryptocurrency ran out of steam against a broader, global economic slowdown. Kling said:

“One instance doesn’t make a market. May just be the crypto market doing its thing. But you gotta watch closely right now [because]BTC is attempting to shift from a risk-on to a risk-off asset which is pretty incredible/historic. So its worth close analysis.”

You can read more about Bitcoin’s weekly performance here.