Cryptocurrency

Bitcoin fails to win coronavirus safety race

Bitcoin fails to win coronavirus safety race

It seems that the first quarter was not good for the Bitcoin, after the digital currency witnessed a decline in its value, but it was still less than major US stock indices, but it failed to prove itself as a safe haven in times of market turmoil.

The number one cryptocurrency in terms of market value saw a 10.65 percent drop due to the dramatic collapse in prices among financial markets due to the Coronavirus pandemic.

However, bitcoin looks better than U.S. stock indices, where the Dow Jones and NASDAQ recorded a decline of 23 percent and 14 percent receptively during the three months ended March 31, not to mention the decline of the S&P 500 dropped by 20 percent, the worst in the first quarter on Launch the biggest quarterly loss since 2008 financial crisis.

All financial markets have witnessed many fluctuations since the beginning of 2020, as the spread of the Corona virus around the world, prompted investors to seek cash.

cryptocurrencies experienced significant volatility during the last quarter. On March 8, the market was hit by a strong sell-off after crude oil prices crash, wiping out about $93.5 billion in 24 hours and a 48 percent crash in the price of Bitcoin.

Gold, a classic safe haven, managed to eke out a 4 percent gain over the first quarter, reserving its place as a favorite safe haven and proving that Bitcoin is not yet up to this global merit.

Moreover, the total market in the virtual currencies market has slumped from $177.5 billion to $176.7 billion, and the trading volume decreased from $112.3 billion to $106.9 billion, according to CoinMarketCap.

The Bitcoin slumped more than 3.26 percent today to trade at $6,250, Ethereum saw a 0.72 percent drop to $132 and Ripple descended by 0.23 percent to trade at $0.17.

Share Article