Bitcoin plunges drastically on Monday and even crosses $8,000, reaching its lowest position in two months. The BTC fall witnesses after the oil price collapse amid the oil price war between Saudi Arabia and Russia. However, Covid-19 is another leading factor that causes Bitcoin to move in a downward direction.
Oil Prices Plunges amid OPEC’s failure
After the failure of the OPEC deal, Saudi Arabia aggressively sets the oil price low to attract more customers. Russia discards the deal and refuses to cut the production rate. The clash between both countries has led the price to drop by 30%. Other financial markets are also affected by this. For instance, Dow Jones plunges by 1200 points. However, gold has performed outstandingly as it reaches its peak value of seven years.
Is Bitcoin still a safe-haven asset?
Bitcoin, that is considered a safe-haven asset, also moves down in the turmoil condition contrary to Bitcoin analysts’ speculations. On March 7, the leading asset was trading above $9,000, and crypto maximalists were expecting from the coin to cross the strong resistance at $9,500. On Monday, the disturbed stock markets also target the leading digital asset, and BTC falls to the first $8,000 and then plunges even more.
A crypto trader @CryptoMichNL believes that the safe-haven assets prove their worth in the long-term, and we can’t underestimate them following short term scenarios.
Then the general discussion about 'safe haven' assets comes around the corner again.
Another friendly reminder; Gold & Silver dropped heavily during 2000 and 2008 as well.
Cash is king, in the first part.
— Crypto Michaël (@CryptoMichNL) March 9, 2020
Another prominent Bitcoin analyst ‘PlanB’ is still optimistic ignoring the recent price fall amid global turmoil. He shares a chart that shows the coin is performing per the ‘S2F track’. Recently, he predicts that the BTC price will touch $100,000 by December 2020.
— PlanB (@100trillionUSD) March 8, 2020
Bitcoin’s dumping in uncertainty shows that it does not meets the expectations of bitcoin lovers who called it safe during critical conditions. For instance, a crypto analyst and economist, Alex Krüger, called bitcoin a ‘’ risk-on asset’’.
— Alex (@classicmacro) March 8, 2020
On the contrary, some are favoring bitcoin over other physical assets on the basis of volatility. The head of Binance Futures, Aaron Gong, says:
‘’I came from the commodities industry, crude is one of the products that I used to deal a lot. Knowing it’s a pretty volatile market but when it is tumbled more than 30% in a single day, I started to think #crypto market is now moving like fixed income products.’’