Bitcoin has been firmly acting as a risk-on asset over the past several weeks, with its price closely tracking the movements seen by the U.S. stock markets. This has invalidated its status as a safe haven asset and has made the benchmark crypto prone to seeing massive near-term downside.Although BTC has been moving in tandem with the Dow Jones, S&P 500, and other benchmark indices, one veteran trader and highly respected analyst is now noting that he believes investors should view Bitcoin, Gold, and other precious metals as “catastrophic insurance policies.”This seems to insinuate that Bitcoin may not benefit from the ongoing economic turmoil seen across the globe unless it morphs into something much worse than a recession.Bitcoin Shows Signs of Breaking its Coupling with U.S. Stock Market At the time of writing, Bitcoin is trading over 7% at its current price of $6,400, which marks a notable climb from daily lows of $5,800 that were set yesterday evening when crypto investors reacted negatively to the massive decline in the stock market’s futures.It is important to note that equities were able to rebound slightly during today’s trading session, erasing a portion of last night’s losses.In spite of this, the Dow Jones and S&P 500 still both closed down roughly 3% today, with the Nasdaq only declining by 0.3%.Today’s market decline allowed Gold to surge over 5%, with the safe haven asset showing some striking similarities to Bitcoin’s price action.Because BTC is currently attempting to rally in the face of significant pressure on the global markets, it is possible that it will soon decouple from equities and begin establishing some independent momentum.Will BTC Become Insurance Against a Global Catastrophe? Peter Brandt, a prominent trader with decades of experience, explained in a recent tweet that from an investment perspective, he sees both Gold and Bitcoin as having value as insurance policies against a “worst case scenario.”“IMO, precious metals (GOLD and BTC) should be viewed as catastrophic insurance policies – not as investments. A premium is paid, hoping the policy is never needed. But if it is needed, the owner is protected against a worst-case scenario,” he explained, lumping in Bitcoin with Gold.IMO, precious metals (#GOLD and $BTC) should be viewed as catastrophic insurance policies — not as investments. A premium is paid, hoping the policy is never needed. But if it is needed, the owner is protected against a worst case scenario. https://t.co/JrMhQe0jIF— Peter Brandt (@PeterLBrandt) March 23, 2020If Brandt’s theory proves to be accurate and Bitcoin does end up deriving its value from this source, it may ultimately benefit from the ongoing economic downturn.Featured image from Shutterstock.