Can Crypto Assets Be Safe-Haven Assets During Crisis Periods?

One narrative around crypto assets is that they are safe havens in times of crisis because they are in limited supply and not dependent on national governments. We test this with recent data and find that crypto-assets have become neither "digital gold" nor a "safe-haven asset" in times of crisis. Their correlations with equities have increased over time, reflecting increasing institutional involvement in cryptos. Furthermore, the correlation between Bitcoin and the S&P 500 significantly increased during COVID, the Russian invasion of Ukraine, and the crypto winter, indicating that Bitcoin failed to serve as a hedging asset during these events.