Bitcoin’s safe-haven myth busted – Nouriel Roubini

• BTC/USD behaves like a risky asset, says the prominent economist.
• The further developments point out that BTC is ready to create a bottom.

Nobel-winning economist and a famous Bitcoin basher Nouriel Roubini has rejoiced as Bitcoin dropped by more than 25% since Friday, March 6. As the flagship cryptocurrency crashed below $8,000 during early Asian hours, he added insult to the injury by pointing out that BTC has lost more value that global equities

In the meanwhile Bitcoin is down 8% in the last day, much more than global equities. Another proof that Bitcoin is NOT a good hedge vs risky assets in risk-off episodes. It actually falls more than risky assets during risk-off. So BTC is a shitty shitcoin hedge in risk-off cases.

Roubini also emphasized that such performance annihilates the narrative that Bitcoin or any other digital asset can be used as a safe-haven asset during economic crises. 

As the FXStreet has reported, BTC/USD took a plunge on Sunday, March 8, which might have been partially explained by PlusToken scheme organizers cashing out another batch of their loot. The sell-off has been intensified by technical factors and the major collapse on the global markets that pushed Bitcoin into a death spiral. BTC/USD bottomed at $7,689. 

Where from here

Some cryptocurrency experts analysts predict that Bitcoin may continue the sell-off a sustainable move below $8,000 pushed it back inside the bear’s market, while the increased pressure on the global markets pushes the anti-risk narrative.

However, the downtrend may be halted due to a combination of a huge bullish gap on CME (about 10% of the current price). The last time the gap of such magnitude was registered in October 2019 amid the Chinese pump. Also, the volatility index, also known as a gauge of fear, experienced the largest spike since 2008. It may signal that the market is ready for a change.

At the time of writing, BTC/USD is changing hands at $7,920. The first cryptocurrency has lost over 9% on a day-to-day basis and recovered from the intraday low of $7,689. From the short-term perspective, it has been moving within a bearish trend amid expanding volatility. 

BTC/USD daily chart