Over the past years, Bitcoin (BTC) has been a safe haven for a lot of digital currency investors. Bitcoin (BTC) is one asset that a lot of investors run to when shielding against any market turmoil. However, the recent price trend in the crypto market has turned things around. Bitcoin (BTC) which has been touted as a safe haven is now proving itself to be anything but that.
Bitcoin (BTC) Price Trend
This month has been really hot for the crypto market. In a period of ten days, the world’s most dominant coin has plunged through $6, $5k, $4k, and it’s now trading close to $3,800. The digital currency initially found support at the $4k mark for some days. However, it broke below that level a few hours ago.
The plunge of this promising product, even though it’s only a fraction of the total global market’s value, has burned a lot of its supporters. According to Cracked’s Jani Ziedins, all those that still have faith in digital currency bought all they could a few months back, and now the market lack investors.
Investors Are Now Wary of Riskier Investments
Apart from digital currency, plunging prices of oil have also made investors to be wary of riskier investments. The supply of oil continues to outweigh demand, this has caused the value of the product to decline significantly. The tensions between China and the US – the two largest oil consumers – have also created a level of uncertainty in the market.
The West Texas Intermediate front-end contract decline by over six percent on Friday. This is the lowest level it has seen over the past twenty months. The increasing level of crudes supply in the world along with the worries of less demand has greatly contributed to the plunge in the oil markets, says Lukman Otunuga. According to Otunuga, the value of crude might decline further as the appreciating dollar is not helping matters.
The equity markets are not exempted in the declines. The Dow Jones Industrial Average (DJIA) is down by 4.4 percent. The Nasdaq Composite Index (COMP) also declined by 4.3 percent during the week, this is the worst week it has seen since March. The S&P 500 also saw its biggest weekly loss in a month, it declined by almost 4 percent in the week. Some energy-related stocks also shared in the weekly loss. Devon Energy Corporation (DVN) and Marathon Oil Corporation (MRO) declined by over 4 percent on Friday alone.
However, bonds are currently on the rise as investors are looking for safe haven from the ructions of the market. The decline in the values of crude and equities has pushed up the values of US government bonds.
While almost all industries are experiencing some sort of losses, but the crypto market’s loss is quite extreme. A lot of digital currencies in the market are now trading at new yearly lows.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin (BTC) is currently valued at $3,852 after plunging by about 12 percent over the past 24 hours. Bitcoin (BTC) now has a market cap of $67.01 billion with a trading volume of $4.70 billion over the past 24 hours.