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Coronavirus outbreak, Warren Buffett's comments halt Bitcoin's colossal rally

Bitcoin has already fallen 3 percent or more in seven sessions during the calendar year. However, the cryptocurrency is still the top-performing asset class of 2020, rallying 31.5 percent year-to-date. It has managed to outclass the likes of gold, crude, Nifty and rupee.

February 25, 2020 / 03:56 PM IST

Bitcoin price came under the cosh on February 25, falling as much as 4.6 percent intraday, as the impact of the coronavirus outbreak continued to haunt the global economy.

Coronavirus has triggered a worldwide panic, claiming over 2,600 victims.

Bitcoin managed to recoup some losses and ended the session at $9,496.50, down 2.61 percent.

coin

Another reason for the fall in Bitcoin prices could be Warren Buffett's comments where he reaffirmed his aversion to cryptocurrencies.

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In an interview with CNBC, the 89-year-old billionaire investor said he doesn't own any cryptocurrency and “never will.”

Buffett has been a long-time critic of the digital coin, terming it “probably rat poison squared,” "a mirage," "not a currency", and "tulips" in various interviews.

The massive price drop is the biggest since last week's carnage which wiped off 5.32 percent, dragging the price below $10,000 levels.

Bitcoin has already fallen 3 percent or more in seven sessions during the calendar year. However, the cryptocurrency is still the top-performing asset class of 2020, rallying 31.5 percent year-to-date. It has managed to outclass the likes of gold, crude, Nifty and rupee.

The latest price drop has once again brought in question the safe-have appeal of the cryptocurrency which was seemingly showing behavioural patterns similar to gold earlier this year.

Contrary to Bitcoin's fall, traditional safe-haven assets generated positive returns on Monday. International Gold reached a fresh seven-year high and tested $1,689 per troy ounce. Silver also tested a high of $18.93 per troy ounce.
Suyash Maheshwari
first published: Feb 25, 2020 03:41 pm

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