Central banks all across Europe and Asia are injecting billions of dollars in liquidity to keep the stock market afloat

Central banks that have previously refused to release stimuli to ensure the sustainability of long-term economic growth have started to bring out strong stimulus packages to boost the global economy.

The coronavirus outbreak, which is at risk of causing a true global pandemic, invoked a level of fear in the financial market that has not been seen in the past decade.

If that fear is matched with some of the biggest stimulus packages in recent years, it could recover the appetite of investors towards higher-risk asset classes that include single stocks, and also Bitcoin.

Will BTC ever be like gold?

For Bitcoin to reach some level of an inverse correlation with the stock market and the financial sector like gold, it will have to see a much bigger market cap than now.

Currently, Bitcoin is valued at a mere $161 billion, less than three percent of gold. Consequently, cryptocurrencies are still viewed as an emerging asset class with limited support from financial institutions.

It could take several more years for Bitcoin to reach a larger market cap, stability in its price, and a more robust infrastructure to back it to potentially act as a safe haven asset.