This morning, cryptocurrencies were among the hardest hit assets as Bitcoin plunged 15% on its way to its worst day since June 2022. The turmoil has investors asking again: What happened to the narrative that Bitcoin is a store of value and a hedge against uncertainty? Bitcoin fell as much as 17% on Monday after a market-wide sell-off over the weekend. The Dow Jones Industrial Average fell as much as 1,000 points on Monday, following a 611-point drop on Friday, while the tech-heavy Nasdaq briefly fell 6%. BTC.CM= 5D mountain Bitcoin, 5th It’s times like these when Bitcoin is supposed to buck the trend. But crypto investors and analysts have long argued that Bitcoin can be many different things at once, and that in time, the current market turmoil will be a good buying opportunity. For short-term and even medium-term traders, that may not be the case, as it trades very close to risk assets. But long-term investors point out that the cryptocurrency is still outperforming the market, rising about 20% this year versus a 9% gain for the S&P 500. “Bitcoin is a hedge against uncertainty, a risk asset and an interest rate bet. It’s a lot of things,” Noel Acheson, an economist and author of the “Crypto is Macro Now” newsletter, told CNBC. “In some ways, it’s [it] Bitcoin tends to be more resilient than other risk assets such as stocks…because of the diversity of its stories.” Bitcoin miners including Coinbase, MicroStrategy, Marathon Digital, Riot Platforms and CleanSpark fell by double digits at one point on Monday, though they recovered from the midday lows. Until this weekend, Bitcoin had been supported by a resilience around $55,000 and struggled to break through the $70,000 ceiling. “Value investors would view $55,000 as a very good price to enter a position, especially if Bitcoin is a hedge against global turmoil in the long term,” she added.
Bitcoin crash due to global market decline calls “safe haven” theory into question again
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