So much for bitcoin as a haven. As financial markets around the world are in turmoil because of the spread of coronavirus, the cryptocurrency is plunging.
The world’s biggest digital currency is down 6.4% in the past 24 hours, according to CoinDesk. At one point earlier Wednesday, it had fallen 7.3%, which was the biggest daily drop since Oct. 23, when bitcoin plunged as Congress grilled Facebook CEO Mark Zuckerberg about his company’s plans for a digital currency.
Bitcoin is down about 10% since Monday and has dropped around 15% in the past seven days.
Wednesday’s decline took bitcoin to about $8,684, well below the $9,000 price level that many crypto observers thought would provide technical support.Quantum Economics founder Mati Greenspan wrote in an email to subscribers Wednesday that after $9,000, $8,200 was the next support level for bitcoin.
On Tuesday, he offered a theory for why bitcoin was dropping at the same time stocks were plummeting. Stocks, he reasoned, were falling because of concerns that an economic slowdown would cause a substantial drop in corporate profits.
“Bitcoin however, is not a safe haven against declining profits,” he wrote. “It’s a safe haven against inflation, geopolitical strife, and central banks. So far, the stocks don’t seem to have realized any of these threats.”
Write to Ben Walsh at [email protected]
The world’s biggest digital currency is down 6.4% in the past 24 hours, according to CoinDesk. At one point earlier Wednesday, it had fallen 7.3%, which was the biggest daily drop since Oct. 23, when bitcoin plunged as Congress grilled Facebook CEO Mark Zuckerberg about his company’s plans for a digital currency.
Bitcoin is down about 10% since Monday and has dropped around 15% in the past seven days.
Wednesday’s decline took bitcoin to about $8,684, well below the $9,000 price level that many crypto observers thought would provide technical support.Quantum Economics founder Mati Greenspan wrote in an email to subscribers Wednesday that after $9,000, $8,200 was the next support level for bitcoin.
On Tuesday, he offered a theory for why bitcoin was dropping at the same time stocks were plummeting. Stocks, he reasoned, were falling because of concerns that an economic slowdown would cause a substantial drop in corporate profits.
“Bitcoin however, is not a safe haven against declining profits,” he wrote. “It’s a safe haven against inflation, geopolitical strife, and central banks. So far, the stocks don’t seem to have realized any of these threats.”
Write to Ben Walsh at [email protected]