Bitcoin (BTC) had a tough week as it hit one-month lows, but in the gold markets, traders recorded the largest daily declines in more than seven years.
According to February 29 XAU / USD tracking data, Friday experienced the worst 24-hour drop in the precious metal since 2013.
Gold drops 7% in 5 days after the sale of coronaviruses
Over the past five days, gold has generally succumbed to sales which have affected traditional markets due to the ongoing coronavirus epidemic. Between February 24 and 29, the XAU / USD lost a total of 7.3% before a slight rebound.
The fragile performance places gold at about the same level as “digital gold”, Bitcoin, whose weekly losses currently amount to around 9%.
Gold chart since the beginning of the year. Source: TradingView
As reported by Cointelegraph, after bouncing back from a low of $ 8,450 over 4 weeks, the largest cryptocurrency returned to its expected average price and has since attempted to recover its 200-day moving average of nearly $ 8,800.
While gold remained steadfast in a free-falling stock market, its proponents were right to rejoice. Golden bug and infamous Bitcoin skeptic, Peter Schiff, took the opportunity to throw the trash to those who thought BTC could act as a refuge.
Schiff: gold “not invalidated”
After the reversal of his fortune, Schiff remained convinced of the promise of gold, while acknowledging that such declines were “very rare”.
“The current 4% drop in gold is a very rare decision in a single day. But it does happen sometimes, ”he wrote in a tweet on Friday.
“However, a 4% drop in @Bitcoin is fairly common, which often shows much larger daily drops. Today’s movement does not invalidate the refuge of gold or the long-term storage of value status. “
Bitcoin figures, including sparring partner of Schiff Morgan Creek Digital co-founder Anthony Pompliano, had ironically suggested that someone should “check it” as the health of gold declines.
Stock market misery continues after the Dow Jones suffered its own record daily loss on Wednesday. Since then, traders have wagered heavily on lowering the U.S. Federal Reserve’s short-term interest rate target in 2020.
