Title: Bitcoin as a safe haven for portfolio diversification

Authors: Sarita Meekoh; Parichat Sinlapates

Addresses: Government Savings Bank, Bangkok, 10400, Thailand ' Faculty of Business Administration and Accountancy, Khon Kaen University, Khon Kaen, 40002, Thailand

Abstract: Global events including the COVID-19 epidemic, the conflict of Russia-Ukraine, and the Israel-Palestine conflict directly affect the economy, increasing volatility. Diversifying risk across asset classes using safe-haven assets offer protection to investors during a financial uncertainty period. During economic uncertainty, investing in Bitcoin helps disperse risks across asset classes. Hence, this research aims to examine the capacity of Bitcoin to function as a safe-haven asset. The period of study is segmented into four distinct periods: pre-events affecting the economy, the COVID-19 epidemic, the conflict of Russia-Ukraine, and the Israel-Palestine conflict. The exponential generalised autoregressive conditionally heteroskedastic (EGARCH) approach is employed to analyse the correlation and volatility concerning other asset values. The analysis revealed a positive relationship between Bitcoin and gold, during the COVID-19 epidemic. Bitcoin could function as a safe-haven asset throughout these specific periods. In the Russia-Ukraine conflict and the Israel-Palestine conflict, Bitcoin and gold did not exhibit a correlation.

Keywords: Bitcoin; safe-haven; portfolio diversification; financial crisis; cryptocurrency; alternative investment.

DOI: 10.1504/IJTGM.2026.155754

International Journal of Trade and Global Markets, 2026 Vol.22 No.3/4, pp.225 - 233

Received: 09 Sep 2024
Accepted: 01 Aug 2025
Published online: 13 Aug 2026 *

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