Bitcoin lost half of its value over the last two days, with the digital currency swept up in the coronavirus selloff, leaving claims that it is a safe haven store of value in tatters.
The price of the world’s largest cryptocurrency was down by almost 50% late last night, falling to lows of $3,850 per bitcoin on the Luxembourg-based Bitstamp exchange before recovering somewhat to trade around $5,000. At time of writing, the digital coin sits at $5,400, still 27% lower than 24 hours earlier.
The rest of the crypto market is also performing poorly. Ethereum, the second-largest cryptocurrency, is currently at $127.82, after a 25% fall over the last 24 hours.
The rest of the top 10 largest cryptocurrencies are also still trade in the red, most of which are seeing losses between 20% and 30%, although Bitcoin SV has fallen by 36%.
While many have often called Bitcoin a safe haven, often stating that it is better than gold, the new development has caused numerous experts to question such claims. Gold itself has surged in the last quarter, with its price going from $1,476 per ounce on December 13th, to $1,700 per ounce on March 8th. Even so, the price of gold dropped due to coronavirus concerns as well, currently sitting at $1,576.
Did Bitcoin fail as a store of value?
On Twitter, experts are debating about Bitcoin’s recent slump. Blueprint Wealth Alliance’s Jeffrey Levine recently commented that he takes no pleasure in seeing anyone losing money and that he still supports crypto investing. However, he stressed that recent development is proof that crypto is not the safe storer of value.
I take no pleasure in seeing anyone lose money, and I’m still open to #crypto investing, but…
Can we please agree the last few weeks have shown that crypto is NOT the safe storer of value that so many of its proponents have claimed? https://t.co/hOMhKfTWIU
— Jeff "The Buckinghammer" Levine, CPA/PFS, CFP® (@CPAPlanner) March 9, 2020
Many others seem to disagree, however, including ShapeShift chief executive, Erik Voorhees, who said: “No, Bitcoin as a store of value isn’t dead just because it had a super shitty day. No, Ethereum and DeFi aren’t dead just because they had a super shitty day. In the coming months, the world will see what anti-fragile means.”
No, Bitcoin as a store of value isn’t dead just because it had a super shitty day. No, Ethereum and defi aren’t dead just because they had a super shitty day. In the coming months the world will see what anti-fragile means.
— Erik Voorhees (@ErikVoorhees) March 13, 2020
Even the notorious whistleblower, Edward Snowden, has his say, arguing that the drop was “too much panic and too little reason.”
This is the first time in a while I've felt like buying bitcoin. That drop was too much panic and too little reason.
— Edward Snowden (@Snowden) March 13, 2020