Bitcoin suffered a big hit in the last 3 days crashing down to $7,635 but it wasn’t the only asset to plummet, in fact, most of the traditional stock market suffered even harder than Bitcoin with Oil being down 34% and the S&P 500 suffering the biggest plunge since the 2008 financial crisis.
It seems that no major asset has been able to escape coronavirus’ gravitational pull. The fears continues to increase and markets remain plunging. Just yesterday, Italy announced a total country lockdown after suffering more than 400 deaths.
Bitcoin fell more than 16% within 72 hours but it’s currently seeing a significant recovery bounce above $8,000 which could soon change the 4-hour downtrend. Either way, the bulls are not facing a lot of resistance considering the shortness of the bear move. If they are able to establish a strong 4-hour uptrend, they will have no problem reaching $9,000 again although the daily downtrend will be tough to change.
Is Bitcoin’s Safe Haven Argument Dead Now?
Most analysts and cryptocurrency enthusiasts expected Bitcoin and the whole crypto market to go up, not down. Although gold has suffered too, overall it held pretty well and the few times it went down can be easily attributed to people being forced to sell to cover other losses.
Bitcoin, on the other hand, has fallen by more than 27% since its 2020 high and shows no signs of recovery. The safe-haven narrative for Bitcoin has been pushed for quite some time now, unfortunately, it doesn’t seem to be working very well right now considering the global economy is suffering a lot.
Brian Armstrong, the Co-founder, and CEO of Coinbase has expressed his surprise about Bitcoin falling down.
Some users are defending crypto stating that everyone is selling anything that they can to cover losses. Unfortunately, a 27% price loss is too significant and would make Bitcoin certainly not a safe-haven.
Bitcoin can still prove its worth if it sees a good bounce and changes the daily trend while traditional stocks keep plummeting. Only time will tell.
