Trading veteran John Bollinger, who is known for inventing the Bollinger Bands indicator, has just acknowledged that the brutal Bitcoin price crash that took place on March 8 has caught him off guard.
In his new tweet, Bollinger says that he expected the benchmark cryptocurrency to act as a safe-haven asset amidst the global sell-off that is driven by the coronavirus (or COVID-19).
Bitcoin is not immune to COVID-19
Bitcoin's safe-haven narrative has been around since the beginning of the coin's very existence given that it was created on the ashes of the 2008 economic crisis. However, once Bitcoin was put to a test during the early stages of what appears to be the first U.S. recession in more than a decade, it hit the rocks along with global equities.
According to economist Nouriel Roubini, BTC dropping even more than U.S. stocks and other risk-on assets has proved that it cannot act as a hedge against global economic downturns.
Even gurus fail to understand Bitcoin
Bollinger, who has been in the industry for more than 30 years, rarely makes false Bitcoin calls. As reported by U.Today, he accurately forecasted a head-fake Bitcoin downturn that was followed by its third-biggest gain in history on Oct. 25, 2019.
The fact that he couldn't get Bitcoin right this time around speaks volumes about how unpredictable this asset is.
There is even a theory that PlusToken scammers, not the coronavirus, caused the 16 percent price drop by selling off their BTC holdings.
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