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Nouriel Roubini Destroys Main Bitcoin (BTC) Narrative

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Mon, 03/09/2020 - 06:00
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Alex Dovbnya
With Bitcoin (BTC) plunging by more than 10 percent in one single day, it's clear that it's a risk-on asset, according to prominent economist Nouriel Roubini
Nouriel Roubini Destroys Main Bitcoin (BTC) Narrative
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Nobel-winning economist Nouriel Roubini has rubbed some salt into the wounds of Bitcoin investors by tweeting that the flagship cryptocurrency dropped by more than eight percent in one day.

The fact that it performed worse than global stocks annihilates the popular narrative that it can act as a safe-haven asset during economic crises. 

Related
Mike Novogratz Explains Why Bitcoin (BTC) Is Failing as Safe Haven

Bitcoin slips below $8,000 

As reported by U.Today, the Bitcoin price took a massive hit on March 8, which was linked to PlusToken scammers dumping another batch of stolen coins on the open market. 

After entering this death spiral, the leading cryptocurrency slipped below the $8,000 level and reached an intraday low of $7,689.  

Bitcoin Price
image by tradingview.com

Some analysts predict that this downtrend is very likely to continue since BTC seems to be in a bear market territory. However, there is also a strong narrative about the biggest bullish CME gap since the China pump in October.  

Related
Crypto Land Is Scam, - Says Nouriel Roubini

An all-front sell-off 

Bitcoin proponents have always believed that the first cryptocurrency would thrive during the next economic crisis. After all, its white paper was published just days ago after Lehman Brothers went bust, declaring the biggest bankruptcy in the US history.       

Nonetheless, when the rubber hits the road, it's clear that it performs just like any other risk-asset. 

The price of oil crashed by more than 30 percent after Saudi Arabia opened the spigot to increase its daily output to more than 10 mln barrels.

The news clobbered global equity markets that already feel vulnerable due to the coronavirus outbreak. In an unprecedented move, US stock futures were temporarily halted after they declined more than five percent. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.