In a weekend of red markets, crude oil prices dipped over 27% a barrel to trade at $30 USD in the US as Saudi Arabia’s price wars with Russia continues. Bitcoin (BTC), has however not performed any better, slipping over 10% over the weekend as the price plummeted below the $7,800 key support level.
Bitcoin follows oil dip as $7,800 level breached
Brent crude, the global crude oil benchmark, dipped about 4% on Thursday to trade at $50 USD per barrel. However, at the start of the weekend, Brent plummeted over 30% to trade at $32.07 USD, as at time of writing. The dip in oil prices has also reflected on the stock market as the market dipped over 5% on Sunday evening leaving the global investors in hysteria.
Global mkts in PANIC mode: Oil prices crashed, equities plunged, currencies & bonds saw wild moves as a full-blown price war in crude adds to coronavirus worries. Nikkei dow almost 6%. US 10y yields <0.5%. Brent Oil at $32/bbl. Gold $1673. Bitcoin in turmoil as well, plunged <$8k pic.twitter.com/0ExP3bIVFw
— Holger Zschaepitz (@Schuldensuehner) March 9, 2020
The global asset market plummeted to record levels leading investors to look outwards to safer assets. After every global asset collapse, investors flood their money in safe haven assets. In the past few years, BTC has increasingly become a favorite choice to store value given the magnanimous growth it has shown over the past decade.
Bitcoin a safe haven in global asset turmoil?
The current crude oil and stocks market bloodbath is different. BTC slipped to two month lows on Monday in the Asian session to hit an intraday low of $7,650 USD across major exchanges leaving investors puzzled on its use as a safe haven while global assets tumble.
The top cryptocurrency dipped over 19% over the weekend, raising questions if BTC really qualifies as a safe haven. Compared to its biggest competitor in that aspect – gold, which lost only 1.68% over the past 24 hours, BTC still has a long way to go to achieve status as a store of value.
At the moment the price of BTC changes hands at $7837, dipping from intraday highs of $8,082 USD.
As global assets continue to dip, will BTC rise to the occasion as a pure safe haven asset?