“Complete loss of defensive asset function… No correlation with gold”
The price of cryptocurrency, Bitcoin, has collapsed below $40,000 in two weeks.
The US economic media Fox Business reported on the 18th (local time) that the price of Bitcoin plunged more than 7% on the same day as fears of a Russian invasion of Ukraine escalated.
According to CoinDesk, a virtual currency information site, Bitcoin traded at $39,958.67 as of 6 p.m. Eastern time (8 a.m. Korean time on the 19th), down 1.81% from 24 hours ago.
“Bitcoin fell once more below $40,000 in two weeks, shattering the hopes of some traders that the cryptocurrency might rebound,” CoinDesk said.
Cryptocurrency market experts said that investor sentiment has contracted as the Federal Reserve (Fed) is in a hurry to raise interest rates and the Ukraine issue overlaps.
Alex Kubsikevich, chief analyst at online exchange FX Pro, pointed out that Bitcoin, which was once noted as an inflation hedge (risk hedging), has recently completely lost its defensive asset function.
He then diagnosed that Bitcoin, which has been called ‘digital gold’, shows little correlation with gold, a safe asset.
/yunhap news
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