The Covid-19 bear market presents the frst acute market losses since active trading of Bitcoin began. This market downturn provides a timely test of the frequently expounded safe haven properties of Bitcoin. In this paper, we show that Bitcoin does not act as a safe haven, instead decreasing in price in lockstep with the S&P 500 as the crisis develops.
When held alongside the S&P 500, even a small allocation to Bitcoin substantially increases portfolio downside risk. Our
empirical fndings cast doubt on the ability of Bitcoin to provide shelter from turbulence in traditional markets.