A long held theory of Bitcoin has been that it would be a safe haven in the event that the stock market took a tumble. This has not panned out to be the case according to reporting from CNBC. The cryptocurrency has been shedding value even faster than the stock market itself during these last few turbulent days.
This has been a disappointment to everyone in the cryptocurrency world. They had hoped that Bitcoin would be able to prove itself to a mainstream audience when the markets did experience some downfalls. That has not turned out to be the case.
You might be able to say that Bitcoin is the victim of bad timing. There have been a lot of factors that have been weighing down on the Bitcoin value. These are things such as new regulations coming out of South Korea and even the United States. Credit cards have been banned from use for trading in Bitcoin in many jurisdictions. This has traders in the currency spooked. They fear that even more regulations could be coming down the pipe. If that is the case, then the whole venture for Bitcoin could be doomed.
It is always difficult to pinpoint exactly where Bitcoin is in a given day, or where it will be after some period of time. It has bounced back somewhat today even as the stock market looks like it is about to dip farther down. This is why it is important to pay attention to where the market is at any given point in order to best understand what is going on. Information one moment may not be as valuable as an exact quote right this second.
Year to date Bitcoin has lost approximately half of its value. It was worth nearly $20,000 per coin at one point, but now it has been sliced down in value in a big way. This was something that was feared by many Wall Street professionals, but it has now come into being.
Many are now fearful of what will happen in the stock market as it continues its pattern of losses that have carried over from the last few days. If it does continue to decline and people begin to scramble for alternative things to put their money into, it is probably not a good idea to shove it into Bitcoin. At least that is the way that things are shaping up right now. Always get the advice of an investment professional before making investment decisions.