{"id":126914,"date":"2020-03-03T21:00:42","date_gmt":"2020-03-03T21:00:42","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=126914"},"modified":"2020-03-03T21:06:19","modified_gmt":"2020-03-03T21:06:19","slug":"quant-crypto-fund-bitcoin-is-just-as-susceptible-to-market-panic-as-other-assets","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/quant-crypto-fund-bitcoin-is-just-as-susceptible-to-market-panic-as-other-assets\/","title":{"rendered":"Quant crypto fund: Bitcoin is just as “susceptible to market panic” as other assets"},"content":{"rendered":"

Quantitative crypto fund Strix Leviathan<\/a> says the narrative of Bitcoin as a hedge against economic uncertainty could be false\u2014considering last week\u2019s nearly unprecedented stock market sell-off, where the S&P 500 suffered its sharpest correction since the 2008 financial crisis and BTC shed nearly 15 percent<\/a> in USD terms.<\/p>\n

The number-one cryptocurrency by market capitalization started to tumble in tandem with the S&P on February 19 as market panic ensued on account of the novel coronavirus. With nearly 3,200 deaths<\/a> and 91,000 cases of the virus having been reported across 85 countries, the pandemic appears to have triggered a flight to safety in global markets.<\/p>\n

\"BTC<\/a>
BTCUSD vs. S&P 500 – Tradingview<\/figcaption><\/figure>\n

Digital gold no more?<\/h2>\n

Bitcoin has consolidated its reputation as a risk-off asset in recent months, with many having cited<\/a> the coin\u2019s correlation with gold, in January, after the United States' lethal drone strike on the Iranian military commander-in-chief.<\/p>\n

At the time, analysts like Andrew Kang argued Bitcoin's price movement during the US-Iran affair proved the market had “strengthened its belief” in BTC as a store of value and hedge against macroeconomic uncertainty.<\/p>\n

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Bitcoin has never shown much correlation to gold or other SOVs. That is, until now.<\/p>\n

This is incredibly bullish for BTC.<\/p>\n

Here's Why ? pic.twitter.com\/nyOI0Swkge<\/a><\/p>\n

— Andrew Kang (@Rewkang) January 8, 2020<\/a><\/p><\/blockquote>\n