A paradox is that digital money - the kind of property that can be considered the world's most vicious change - becomes a stable fortress if compared to the slumps of the global stock market.
According to Bloomberg data, bitcoin rose to a one-month low from the lowest four-month lows it hit on Feb. 6 to rebound 53% to $ 9,069. Overall, the S & P 500 and Dow Jones were down more than 5 percent last week, blowing up all of their gains since the start of the year. Not only US stocks, emerging markets and money markets are also plummeting. Meanwhile, short-term US Treasuries jumped as investors fled from risky assets to find safe havens.
Immediately, bitcoin advocates have quickly praised the important feature of digital money: the asset is completely immune to the turmoil of the vast financial market, not under the constraints of any public sector, country or central bank, and therefore can become a paradise when the market collapses. And although chaos is something that can easily be found at bitcoin prices, last week US stocks have beaten the biggest currency in this respect.
The drop of 70% from the peak of nearly $ 20,000 from bitcoin has prompted many analysts to comment that the final bubble of digital money has broken. However, at least if you look at price fluctuations in the past week, it can be said that it is too early to say so.