Neither Bitcoin Nor Gold; Is Cash the Only Safe Haven During A Panic?

  • Bitcoin volume skyrockets amidst the worst sell-off in 7 years
  • A major volatility spike was also recorded that was last seen in 2014
  • Only cash is the safe haven during the time of crisis and panics

Bitcoin had its worst sell-off in 7 years as it dropped to $3,850 and even lower at $3,600 on BitMEX that resulted in only 44% of Unspent transaction output (UTXOs) in profit. Bitcoin’s market value to realized value (MVRV) has also fallen below 1 while Net unrealized profit/loss (NUPL) has dipped into capitulation. Bitcoin and USDT exchange inflows meanwhile surged during this sell-off.

A drop of about 66% from 2020 high of $10,500, saw a reshuffling of bitcoin ownership as a lot of bitcoin changed hands this week. The daily trading volume skyrocketed amidst the sell-off, going to the level last seen in 2019.

A whopping $4.2 billion changed hands on March 12 with the 7-day average real trading volume spiking to $1.5 billion, more than double the volume we recorded at the beginning of the week.

Such a big move has the 20-day volatility jumping above 7%, not seen since 2014. The futures market for bitcoin also turned extremely volatile, with the premium rates on futures gone. Most of the contracts are now trading below the spot price.

The March contract on deribit is trading $300 below spot price “implying an astonishing -80% annualized premium.” The bearish sentiment can be seen in the futures market as contracts for September expiry are also trading below spot.

It was Panic Selling Not Institutions Behind Bitcoin’s Crash

The crash in bitcoin price also recorded the highest correlation with the stock market in BTC history, going from 0.1 to over 0.5.

“Today proves that institutions buying Bitcoin has a flip side,” commented bitcoin developer Jimmy Song.

However, billionaire investor Mike Novogratz of Galaxy Digital believes that isn’t the case.

“That wasn’t institutions. That was a leveraged washout. Institutions aren’t fast enough to sell like that. That was panic selling from people who bought on margin,” said Novogratz.

We have been seeing the same sell-off even in gold, a traditional safe-haven asset which during the times of emergency had its worst weekly drop since 2013.

As Ari Paul says, “during standard panics, *everything* sells off except cash. That's because people want the stuff that lets them buy food and pay rent. Fear = everything falls except cash.”

On BTC as a safe haven, he said the deflationary crypto asset “does well when people *fear cash* – when they fear inflation/depreciation,” and not economic turmoil. Bitcoin was introduced as a censorship-resistant way to exchange value.

“I'd argue it's more valuable as a seizure resistant asset. Live in a place where a bank or thugs or the government might confiscate your money? It's very useful to you,” said Paul.

Bitcoin (BTC) Live Price

1 BTC/USD =$11,753.3855 change ~ 0.36%

Coin Market Cap

$216.9 Billion

24 Hour Volume

$4.54 Billion

24 Hour VWAP

$11.67 K

24 Hour Change


Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

YFI’s Andre Cronje isn’t Going Anywhere; ‘This Space Won't Get Rid of Me'

Andre Cronje, the guy behind yEarn and the popular YFI, is not leaving the cryptocurrency space any time soon, at least, “until there is...

Crypto Mom, Hester Peirce, Secures Second Term as SEC Commissioner Through 2025

The US Securities and Exchange (SEC) Commissioner Hester Peirce, aka “Crypto Mom,” has been confirmed for a second term that will last till June...

yEarn Expanding its Ecosystem to Bring in Hot DeFi Tokens into the Mix

DeFi craze continues to get hotter as the system grows. yEarn’s zero supply valueless token YFI climbed to a new high today at $5,300 and...

Bitcoin Dollar Cost Averaging From 2017 Market Peak Still Returned 61.8%

Bitcoin price remains strong, not far from hitting $12,000 yet again after the touch and go over the weekend. Interestingly, despite the fact that the...

DEX Leader Raises $11 Million in Series A Funding for Uniswap V3 Following an Explosive Month

A popular and widely used decentralized exchange (DEX) Uniswap has raised $11 million in Series A funding led by Andreessen Horowitz with additional investment...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today