Investors have moved a record amount of funds out of stocks and into bonds and other ‘safe’ assets, like Bitcoin, according to analysis. Bond inflows last week reached $23.6 billion, which would see a record $1 trillion added to the $10 trillion bond market in 2020. By comparison, equity funds took in a net $8 billion in 2019.
The massive injection of investment into the bond market appears to indicate investor distaste for volatility. As the stock market has reached all-time highs, the swings in the market have increased dramatically. Such volatility creates anxiety for investors seeking to protect gains.
Bonds are traditionally considered low-risk investments. Returns, though potentially much smaller, are guaranteed. As such, bond investors are able to receive certain returns without exposure to the dangers of high volatility.
The push into bonds reflects the broader market desire for ‘safe-haven’ assets such as gold and precious metals. The pursuit of stability has also been driven by the fear of global pandemic associated with the coronavirus. Potential economic upheaval related to the disease has increased investor anxiety.
As investors have moved to safe-haven assets, Bitcoin has seen a spike in value as well. The first six weeks of 2020 saw the coin break $10,000 for the first time since September of last year.

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Jon Buck
With a background in science and writing, Jon's cryptophile days started in 2011 when he first heard about Bitcoin. Since then he's been learning, investing, and writing about cryptocurrencies and blockchain technology for some of the biggest publications and ICOs in the industry. After a brief stint in India, he and his family live in southern CA.
With a background in science and writing, Jon's cryptophile days started in 2011 when he first heard about Bitcoin. Since then he's been learning, investing, and writing about cryptocurrencies and blockchain technology for some of the biggest publications and ICOs in the industry. After a brief stint in India, he and his family live in southern CA.
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