Bitcoin’s slide below the psychological level of $9,000 is debunking the narrative that geopolitical uncertainty from coronavirus fears and a sizable hit to the stock market would drive more investors to the leading cryptocurrency.
With the Dow plunging 6.6% and shedding 1,877 points in the past five days, Bitcoin has made a similar move to the downside, dipping 7.0% from $9,663 to $8,985, at time of writing.
According to Bitcoin critic and gold proponent Peter Schiff, BTC’s safe-haven narrative has gone bust and all that’s left is a pivot to a new tune: “Bitcoin is an uncorrelated asset.”
Says ‘The Breakdown’ host Nathaniel Whittemore via Twitter,
“As a dude who spends a LOT of time on narratives, bitcoin as uncorrelated has always been the narrative base case.
The flirtation with ‘safe haven’ has been driven by a couple moments, a belief in future potential, and a bet that some might put a down payment on that future.”
“Bitcoin has been uncorrelated to other asset classes. If stocks drop, this does not mean Bitcoin has to pump. If gold prices climb, this does not mean Bitcoin will rise with it every time. Not negative or positive. uncorrelated. Narratives will come and go.”
Source: via Twitter
Schiff cries foul on all the Bitcoin supporters and says the gig is up.
“On CNN Anthony Pompliano [Morgan Creek Digital co-founder] admitted that Bitcoin isn’t a safe haven asset, but a non-correlated asset, meaning regardless of what other assets do, Bitcoin is as likely to go down as up.