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The
biggest cryptocurrency slumped as much as 24% during morning
trading before clawing back some of its losses. It was last down
18% at $6,500, still on course for its biggest daily loss in
five years.
It has lost around 30% of its value in the last five days,
outpacing sharp losses for assets from stocks to oil as the
pandemic wreaks havoc on the daily life of millions.
"We've seen de-risking across all asset markets," said Jamie
Farquhar, portfolio manager at London-based crypto firm NKB. "Bitcoin
is certainly not immune to that."
Global stocks plunged into a bear market and oil slumped on
Thursday after U.S. President Donald Trump banned travel from
Europe to stem the coronavirus.
With traders citing a rush away from risky assets across all
asset classes, bitcoin's fall has undermined arguments that it
acts as a safe haven in times of geopolitical stress.
The slump has also underlined nagging questions over bitcoin's
practicality as a currency. Prone to wild and often inexplicable
price swings, it has failed to take off as a means of payment
and is used mainly a speculative token.
Bitcoin had risen by nearly half in the first six weeks of the
year as investors bet that a combination of arcane tech factors
in its code and expectations of mainstream acceptance were
leading to a repricing.
(Reporting by Tom Wilson; Editing by Tommy Reggiori Wilkes and
Alison Williams)
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