Bitcoin (BTC) has plunged on Thursday, breaking through $6,000 – its lowest since May 2019 – hurt by Coronavirus panic.
Some exchanges have witnessed massive selloffs on Thursday, losing around 20% over the last 24 hours.
Cryptocurrencies continue to suffer huge losses across the board, as they move in tandem with traditional markets that are impacted by Coronavirus panic.
Vijay Ayyar, head of business development at crypto exchange Luno, said:
“Investors are moving out of any risky assets. Even though Bitcoin is compared to gold as a safe haven asset, it’s very under-penetrated and is considered more as a risky asset to hold at this point.”
The largest cryptocurrency fell to $5,705.31 at one point, and then rebounded to $6,068 at 7:37 am in New York, according to Bloomberg pricing. Bloomberg Galaxy Crypto fell 25%, with Ethereum, XRP, and Litecoin declining as well.
This steeper decline in equity and crypto markets come as a result of fears that the spreading epidemic would lead to a significant economic downturn.
Thus, the downturn undermines the argument made by many Bitcoin supporters that the biggest cryptocurrency could be a safe haven in times of turmoil.
Peter Schiff: BTC Negatively Correlated to Safe-Haven Assets
For those who think BTC is “digital gold,” data reveals the two currencies out of step on the monthly time frame. However, both BTC and gold rose 9.45 percent and 8.82 percent in 2020.
Unsurprisingly, Bitcoin skeptic Peter Schiff thinks otherwise, he said on his twitter account:
“Bitcoin is no longer a non-correlated asset. It’s positively correlated to risk assets like equities, and negatively correlated to safe-haven assets like gold. When risk assets go down, Bitcoin goes down more. But when risk assets go up, Bitcoin goes up less. No value in that!”
At the time of press, BTC tumbled 23.50 percent to $5,858.75, while ETH plunged 30.98 percent to $130.57.