Bitcoin loses the appeal of a safe haven asset this week. The world's first and most widely held digital currency has dropped 50% in the past few days.
Rheo metric words CoinDesk, Bitcoin, commonly referred to as digital gold, dropped more than 30% on March 13 and reached its lowest level since March 2019, below the $ 4,000 mark while the week earlier still remained above $ 9,000.
The bitcoin price then recovered to about $ 5,400 when the US market closed. Meanwhile, bitcoin futures are in their worst week since launching in December 2017.
The digital currency traded near $ 10,000 in February and its price began to slip as the global market slumped due to the rapid spread of the COVID-19 epidemic.
The recent price volatility of bitcoin is primarily a result of the rapid spread of corona virus affecting the global market and prompting investors to transfer their holdings of cash to increase safety, according to Joe DiPasquale, CEO of the investment firm. BitBull Capital digital currency.
With this drastic reduction, bitcoin's ability to act as a safe haven asset is questionable, but we believe it is still too early to consider the correlation between bitcoin and other asset classes.
The price of bitcoin plummeted on March 12, when there was a selloff in Wall Street this week.
It was the worst market day since the collapse of the Black Monday in 1987. Stocks rose sharply on Friday afternoon (March 13) after the stimulus package from the governments of the above countries. world.
Other digital currencies also fell this week. The world's second largest digital currency Ethereum dropped 46% during the week while Ripple dropped nearly 40% in value.