Bitcoin Not “Strong Enough” To Be A Safe Haven Asset? Price Loses 18% Value this Week
- Bitcoin drops below $9,500, losing 18% this week so far
- Bitcoin not strong enough to swim in the ocean?
Bitcoin has taken yet another dump. In the past 24 hours, Bitcoin has dropped 8% to as low as $9,467, wiping out all the gains made earlier this month. Since then, however, BTC had made some recovery as it jumps above $10,000.
Meanwhile, trading volume continues to rise, currently registering at $1.76 billion on Messari, up from $495 million at the beginning of this week.
As Bitcoin loses more than 18% of its value, analysts have turned bearish, with the calls from $8,500 returning the market. Some believe we can go as low as $6,000 even. Analyst Don Alt says if Bitcoin goes to $9,415 level, things are going to be “worrisome.”
Meanwhile, analyst and trader Benjamin Blunts is revisiting his previous projection, where he called out BTC’s drop to $7,000. From there, Bitcoin would move to the new all-time high (ATH). However, this drop might not be coming before October, which coincides with trader Jonny Moe’s analysis of Bitcoin hitting a peak after the reward halving event that falls in May 2020.
In the short term, Bitcoin is struggling, but the macro outlook is intact. A correction after the sharp upward move by Bitcoin has been expected. Once Bitcoin hit the bottom of this rally, we are reaching for the moon.
— PlanB (@100trillionUSD) August 15, 2019
Bitcoin not strong enough to swim in the ocean?
However, this fall is defying Bitcoin’s status as a safe haven asset. Earlier this month, when China's currency yuan fell below important psychological value, the stock market experienced the worst fall of 2019 while the leading cryptocurrency spiked just like gold.
But this week, Argentina's peso dropped about 30% in value against the USD Dollar but BTC wasn’t the asset used as a hedge against this crisis.
The entire World is devaluing their currency and $BTC traders are in a State of "Extreme Fear" and worried about a collapse of an extremely scarce currency that will have the highest to stock to flow ratio of any asset on the Planet within 5 years?
— Mr. Anderson (@TrueCrypto28) August 14, 2019
So, what does it mean?
“Could be BTC is strong enough to act as a safe haven to an extent and for certain types of stress, but not all,” said Travis Kling founder of Ikigai Fund.
He says, this could also be cryptocurrency specific market structure issues or that Bitcoin is just not strong enough to swim in the ocean.
It’s like maybe BTC is strong enough to swim in the pool right now but not in the ocean.
Maybe BTC can act as a safe haven when the VIX goes from 12-17 but acts risk on above 17.
Maybe BTC can rally with gold when its about tariffs but not when its about global growth slowdown.
— Travis Kling (@Travis_Kling) August 14, 2019
Bitcoin has started to be used as a hedge against certain crisis but it still has a long way to go as gold is still a popular safe haven asset.
Bitcoin’s price is $33,957.33 BTC/USD exchange rate today. The real-time BTC market cap of $636.42 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $24.58 Billion and live coin value change of BTC -0.48 in the last 24 hours.