Bitcoin Is More Profitable to Invest Into than Bank Stocks

Bitcoin price rose more than 36% since the year’s beginning while the shares of banking giants have experienced huge fallings. For example, the shares of JPMorgan Chase & Co (NYSE: JMP) are 37% cheaper than in January, and Wells Fargo & Co (NYSE: WFC) lost over 55% of its market value.

The selling-off that happened in the banking sector was mainly caused by the effects COVID-19 pandemic had on the economy. The cryptocurrency experts believe that Bitcoin and gold will somehow profit from the crisis as they will serve as safe haven and a certain hedge against inflation.

Analysts believe Bitcoin is a special kind of safe haven. Still, when other safe havens tend to show negative interactions with so-called risk assets like stocks or oil or high-yield bonds, Bitcoin favors showing no correlation to anything except other cryptocurrencies.