Bitcoin Just Failed the Coronavirus Test
Bitcoin has taken investors on a roller-coaster ride, and although its value has risen dramatically since its inception more than a decade ago, it's had plenty of huge downdrafts along the way. The latest plunge in bitcoin, though, comes at a time when many would've thought the cryptocurrency would be most likely to soar: in the wake of the global COVID-19 pandemic.
On Thursday, bitcoin suffered its worst one-day drop in years, falling from $7,600 to $5,300. The price of the popular cryptocurrency approached $4,000 at moments on Thursday night. Shares of the bitcoin-tracking Grayscale Bitcoin Trust (OTC: GBTC) followed suit. With the price of bitcoin having been above $10,000 as recently as mid-February, the question many crypto investors have is why the token's price failed to deliver on its promise as a safe-haven asset in times of turmoil in the traditional financial system.
Image source: Getty Images.
Source Fool.com
