{"id":51889,"date":"2020-03-06T22:48:18","date_gmt":"2020-03-07T06:48:18","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=51889"},"modified":"2020-03-06T22:59:16","modified_gmt":"2020-03-07T06:59:16","slug":"the-time-bitcoin-failed-to-work","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2020\/03\/06\/the-time-bitcoin-failed-to-work\/","title":{"rendered":"The Time Bitcoin Failed to Work"},"content":{"rendered":"\n

If there were ever a time for Bitcoin (BTCUSD) to soar, the Coronavirus-inspired sell-off in global financial markets should be that time. The cryptocurrency increased 6.7% this week, but that gain did not even finish reversing the last big down day on February 26th when the U.S. stock market dropped into oversold territory<\/a>. BTCUSD is even still down 15% from the last peak which printed just ahead of the all-time high of the S&P 500 (SPY)<\/a>.<\/p>\n\n\n\n

\"Bitcoin
Bitcoin (BTCUSD) increased about 6.7% for the week but remains well off the last peak around 10,700
Source: TradingView.com<\/a><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

Bitcoin promises to provide a bulwark against fiat currencies and the accompanying instabilities in financial markets. This week’s rise could be interpreted as confirmation given the U.S. Federal Reserve slashed its interest rate with the promise of more to come. However, the previous week the S&P 500 suffered an 11.5% plunge and BTC\/USD performed even WORSE with a 14.5% plunge. Moreover, Bitcoin’s bottom corresponded to the bottoming in the S&P 500<\/a>. In other words, during this episode of volatility, angst, and more easy fiat money, Bitcoin is not providing the promised buffer. This failure particularly stands out given all the bullish reasons offered for Bitcoin’s previous breakout above $10,000<\/a>. <\/p>\n\n\n\n