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Bitcoin Offers No Refuge From Covid Market Rout

  • Cryptocurrency tumbles as risk-off sentiment permeates
  • Recent moves highlight debate around crypto’s portfolio role
Cryptocurrency Kiosks Amid Bitcoin, Ether Record Rally
Photographer: Moe Zoyari/Bloomberg
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On a day when investors needed a place to hide, one alternative area of the market wasn’t providing any refuge: Bitcoin.

The world’s largest cryptocurrency had its worst day in more than two months, slumping almost 8% to about $54,350 as of Friday afternoon amid a rout in world stock markets on the emergence of a potentially dangerous coronavirus variant. The drop undercut the argument of Bitcoin proponents who see potential in the token as a hedge against turmoil in more traditional risk markets despite its own history of big swings and speculative frenzy.