The Sharp Drop in Bitcoin Price Pushes All Non-Believers to Attack It

Unless you live in a cave or deep in the forest, you must have realized last week that the world is entering the great economic crisis that has been expected for several years now.

Buoyed by a policy of very low interest rates, and a massive injection of liquidity over the past few years, the financial markets were largely overvalued.

Sooner or later, Wall Street traders’ dreams of infinite market growth would have to come to an end.

The coronavirus acted as a catalyst for the start of this economic crisis, just as the collapse of the Lehman Brothers bank in 2008 did.

The majority of people are panicking. Everybody is trying to get as much liquidities back as possible. All liquid markets are being hit with sharp declines. Most financial markets lost more than 15% last week.

In this context, Bitcoin has also fallen. As the only truly free market in the world, Bitcoin has let its users find the equilibrium price.

As a result, Bitcoin price lost more than 50% in a few hours from $8K to $4K, before rebounding to nearly $6K. At the time of writing, Bitcoin price has stabilized at around $5.3K.

For me, Bitcoin showed its superiority over Wall Street during the widespread panic of March 12 and 13, 2020.

The fierce opponents of Bitcoin, however, have a completely different opinion than I do.

These non-believers have taken the opportunity for attacking Bitcoin. Attacking a beast on the ground is always easier. When Bitcoin price was $13K in June 2019, few of these non-believers dared to speak out publicly.

Listening to these non-believers, this sharp drop in Bitcoin price is proof that Bitcoin is not a safe haven in times of crisis.

Unluckily for them, the price of gold has lost more than 10% at the same time. Yet gold has been recognized as a safe haven in times of crisis for centuries.

The fall in the price of gold under these conditions in no way calls into question its role as a safe haven. For Bitcoin, you have to understand that it is the same thing.

Bitcoin is a liquid market just like gold. We are in a liquidity crisis. Panic is gripping most people. It’s driving everyone to seek liquidity at all costs.

In this moment of panic, people who have capitulated by selling their Bitcoins are clearly not Bitcoiners.

They don’t have the mental strength to keep a cool head in the face of the volatility inherent in a true free market such as Bitcoin.