Bitcoin has this week experienced levels of volatility not seen since the earlier years of last decade – dropping over 40 percent on March 12th before rebounding close to 50 percent on March 13th. The big movements matching the drama of the global stock markets over the last few weeks.
The question now posed is what caused the original crash and the subsequent rebound. Parallels will be drawn with markets such as the S&P 500, which also suffered one of its worst drops in history on the Thursday of this week.
But to deduce from this that Bitcoin has lost its safe haven narrative would be a mistake. Gold, the traditional commodity used as a haven from market instability also suffered drops of up to 4.5 percent, before closing around 1577$ – a 3.5 percent drop from open.