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Bitcoin plunges through $6,000 in worsening crypto rout

The largest digital currency at one point tumbled to $5,705.31.

Bloomberg|
Last Updated: Mar 12, 2020, 06.21 PM IST
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Bitcoin
The largest digital currency fell as low as $7,353 and was down 5.6 per cent as of 3:25 p.m. in Hong Kong, according to consolidated pricing compiled by Bloomberg.
Bitcoin plunged on Thursday, at one point sinking through $6,000 for the first time since May as a sell-off in cryptocurrencies became a rout amid wider market turmoil sparked by the coronavirus pandemic.

The largest digital currency at one point tumbled to $5,705.31, though the move eased slightly to trade down 23% at $6,068 as of 7:37 a.m. in New York, according to Bloomberg pricing. The wider Bloomberg Galaxy Crypto Index slumped 25%, with Ether, XRP and Litecoin also plunging.

The wild moves come as stock gauges globally slide into bear markets and credit cracks on fears the spreading virus will cause a significant economic downturn. The retreat threatens to undermine the argument from many of its advocates that Bitcoin can be a haven in times of turmoil.

Bloomberg
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“Investors are moving out of any risky assets,” said Vijay Ayyar, Singapore-based head of business development at crypto exchange Luno. “Even though Bitcoin is compared to gold as a safe haven asset, it’s very under-penetrated and is considered more as a risky asset to hold at this point.”

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