Even though the U.S stock market plummeted this week, the major currency which is known for giving investor’s a scare has remained surprisingly stable. Bitcoin is actually up 1% for this week and has steadily lasted in the $6500 price range.
In comparison the Dow Jones Industrial average dropped 3% this week alone after disappointing quarterly results from tech companies. The ongoing trade war between the U.S and China and rising interest rates were another concern to investors.
However Bitcoin’s insulation from the market wreckage is a new phenomenon as earlier in October an equity sell off also affected the cryptocurrency. Bitcoin dropped 6% then and lost $18 billion of its value. Altogether Bitcoin has lost 65% of its value since last year’s peak of $20,000. It is that very volatility which has made it impossible to use as a payment method, but instead investors have billed it as the new digital gold and store of value. The cryptocurrency might have also finally reached its bottom around $6000 as retail investors may have left the marked.
The next wave of investment could be from institutional investors who are coming albeit slowly.