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Important points
Bitcoin briefly fell below $50,000 on Monday as a crypto sell-off spread, resulting in $1.2 billion worth of crypto liquidations.
Ether, Solana, and other alternative crypto assets are falling even further than Bitcoin.
Despite Bitcoin’s aspirations as a safe haven, recent price action suggests that it still operates as a risk-on asset today.
Bitcoin (BTCUSD) briefly fell below $50,000 on Monday for the first time since February as economic fears in the United States extended the decline in markets beyond stocks, prompting liquidations of around $1.2 billion in cryptocurrencies in the past 24 hours.
It’s been a roller coaster ride for Bitcoin investors. This morning’s low was nearly 30% below the $70,000 price level Bitcoin reached exactly a week ago. The largest cryptocurrency by market cap has recovered somewhat, trading above $54,000 early Monday afternoon.
Bitcoin ETFs, Altcoins, Crypto-Related Stocks Drop
As the stock market tumbled on Friday, nervous investors made $237.4 million from spot Bitcoin exchange-traded funds (ETFs), according to data from Farside Investors.
As is often the case with crypto price drops, alternative crypto assets are down even more than bitcoin. Ether (ETHUSD) is down 24% in the past week, while Solana (SOLUSD) is down 28%.
Crypto-related stocks felt a double dose of selling pressure from both the equity and crypto markets. Shares of MicroStrategy (MSTR), one of the largest institutional holders of Bitcoin, fell 9%, while shares of Block (SQ) and Coinbase (COIN) fell 2% and 5%, respectively.
Bitcoin mining stocks also fell. Cleanspark (CLSK) fell 11%, Hut 8 (HUT) fell 7%, Marathon Digital (MARA) fell 5%, and Riot Platforms (RIOT) fell 3%.
Bitcoin Pullbacks Are Not Uncommon
It is not uncommon for Bitcoin to experience multiple major price drops in bull markets following the halving events in April. Despite Bitcoin’s intention to operate as a safe haven, its recent sell-off alongside the stock market suggests that it still trades as a risk-on asset during times of global market uncertainty.
Still, that’s not enough to shake the confidence of some long-term Bitcoin bulls.
“People tend to hit the sell button on liquid assets during broad-based panics,” Bitwise Chief Investment Officer Matt Hougan wrote on X. “But from where I sit, today’s events add to the long-term story for bitcoin.”
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