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.
In the meanwhile Bitcoin is down 8% in the last day, much more than global equities. Another proof that Bitcoin is NOT a good hedge vs risky assets in risk-off episodes. It actually falls more than risky assets during risk-off. So BTC is a shitty shitcoin hedge in risk-off cases— Nouriel Roubini (@Nouriel) March 9, 2020
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.
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.
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.