Bitcoin (BTC) prices plummeted 13.3% between April 12 and 13, causing leveraged traders to liquidate their assets. These events resulted in almost $500 million worth of liquidation and $5.4 billion reduction of open interest.
Although the price rebounded to $62,600, which some experts write off as just volatility, many other analysts think the recent price crashes weaken the Bitcoin store of value credential even more as compared to gold steadiness in geopolitical storms, such as war.
Despite gold’s volatility, the commodity time and again has proven to be rewarding as a stable store of value, trading at $2,350 after touching a record high of $2,432 on April 12.
Tom Linn reports that gold is still considered safer than Bitcoin, because it increased in value during times of conflicts, while Bitcoin hasn’t.
One might argue as well that the data for option and futures contracts of Bitcoin demonstrates big players maintain their position as they are the ones that buy most of these products. BTC futures cost had a compounded annuity of more than 10%, suggesting that people found the cryptocurrency to be a market for gains.
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