The Bitcoin (BTC) price continues to crash together with legacy markets, which means that its safe haven narrative is on shaky ground.
Robeco's portfolio manager Jeroen Blokland has pointed out that BTC has plunged 12 percent in just two weeks, thus erasing nearly 40 percent of its 2020 rally.
An ambidextrous asset
Cryptocurrency vlogger Carl Eric Martin has touched upon Bitcoin's status as a store of value in his latest video where he says that BTC was supposed to move in line with gold amidst a big spike in safe-haven buying. Instead, it acted as a risk-on asset by plummeting together with the S&P 500.
"I would love to say that this is just a coincidence, which it could be, but let's entertain the thought that people are selling Bitcoin because they are fearing the coronavirus and they are fearing a bigger stock market crash."
This would leave a huge dent in the 'digital gold' narrative that became pervasive in the crypto space after BTC started moving in tandem with the yellow metal during the escalation of the US-Iran conflict in January.
Too early to tell
However, Martin didn't rule out that this may only be a price correction that could be followed by a significant pump in the next couple of days. As reported by U.Today, Bitcoin hasn't had a single negative monthly close in February since 2014.
"This is not conclusive evidence that Bitcoin (BTC) is dumping because of the coronavirus."
If there's no respite from selling in the US equities market, investors could eventually turn to Bitcoin. Hence, the analyst still believes that the biggest cryptocurrency by market cap can be a safe haven.
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