Bitcoin, DOGE, Gold and Silver: Which Will Protect You in a Crash?

With the increased risk of recession, should Bitcoin continue to hold, or does it make more sense to move investments to gold or silver?

Gold, silver or Bitcoin?

The risk of global recession caused by inflation continues to be even more valid with the Fed’s hawkish decisions. As a result, many cryptocurrency investors are on the verge of returning to traditional assets like gold and silver. This is due to the fact that the largest cryptocurrency, Bitcoin, has dropped more than 70% from its peak price. BTC is currently trading at $16,400 and is struggling to climb into the $18500 demand zone. Also, during the pandemic, the Bitcoin price has witnessed a historic drop. During this period, it fell 63% from $10500 to $3900. It also experienced another 83.3% drop during the 2018 economic crisis.

How durable are gold, Bitcoin and its risks relative to the markets?

As for gold, the general investor instrument manages to maintain its value despite the economic crisis. The advantage of gold over the markets, such as cryptocurrencies, is that it has proven itself for years. This means that investors run for gold first and think long-term in times of crisis.

The gold price has soared for five consecutive months while the crypto market has been on the decline since November. It rose 17.7% from $1750 to $2069 over the course of the process. Yet it was among the assets that fell during the pandemic. It fell from $1,706 to $1450 during Covid-19 sales. It also moved largely sideways during the economic crisis of 2018.

Silver?

We see that the price movements of silver react in a similar way to gold. While the gold price rose by 17.7% in November 2021, when the markets began to decline, the silver price rose from $21.4 to 27 levels. As a result, gold gained more than 25% alongside its 17.7% increase. During the Covid-19 sales, the price of silver fell from $17.5 to $11.7. The 33 percent loss was followed by a 155% growth. Silver price reached $29.8, exhibiting one of the strongest bull runs of recent times. In the general picture, silver turns crises into opportunities, similar to gold.

In summary, since November, when Bitcoin lost more than 70% of its value, the gold and silver market continues to find new buyers. As to which is better, analyst Sunil Sharma says, based on psychology:

In weak economic times, fearful investors should avoid risky assets and may invest in gold or silver. However, the above analysis shows that crypto and the stock market offer maximum gains during the bull market.

How logical is Dogecoin?

Alongside gold, silver or Bitcoin, Dogecoin is traded in different market conditions. The sudden spike of over 20% in just seven days in the middle of the crypto winter is one indication of this. Dogecoin’s rallies are often based on fundamental analysis flow. Its current rally has emerged in hopes that Twitter’s new CEO, Elon Musk, will be able to incorporate Dogecoin as one of the payment systems in Twitter 2.0. But the slides make no mention of Dogecoin.

Meanwhile, another theory put forward for the rally was a supposed collaboration by cryptocurrency phenom David Gokhshtein between Musk and Ethereum co-founder Vitalik Buterin to “raise DOGE somehow.”

While speculation could boost Dogecoin, it is unlikely to continue without the support of fundamentals. Dogecoin is currently down more than 90% from the ATH price. This turns out to be a high-risk investment, albeit an explosive investment.