Analysts are claiming March was a pivotal time for bitcoin and most other cryptocurrencies in terms of volatility.

Volatility Was At Its Highest Since 2013

During this month, bitcoin reached a six-year high for price swings. That means everything bitcoin and the crypto space encountered in 2018 – arguably a harsh time for most digital assets – is small beans compared to what we’ve witnessed over the past four weeks.

According to firms like Block Force Capital, bitcoin volatility swelled by 167 percent on the final day of March. The currency was the subject of a mass selloff that saw many users and owners getting rid of their crypto stashes in order to maintain their cash. It was an ugly sight that caused the world’s number one cryptocurrency by market cap to fall from over $10K to about $3,800 – it’s lowest point for the year.

The good news is that the currency has recovered somewhat at press time, with the asset having expanded all the way to about $7,290 at the time of writing. Still, considering its price was $10,350 in February, there’s still plenty of space for improvement.

In addition, several other assets – from oil to stocks – also exhibited hardcore falls during this time.

Nicholas Pelecanos – head of trading at NEM Ventures – explained in a statement:

From early February to mid-March global equity, commodity, currency and crypto markets have all endured one of the most violent selloffs in history. This highly correlated move was caused by a massive liquidity crunch sparked by investors selling equities due to the economic fallout of the COVID-19 virus.

Aside from the volatility figures, bitcoin’s respectability figures have also varied with users, with many claiming that the currency has lost its alleged “safe haven” status. Others, however, go even deeper to suggest that bitcoin never qualified as a “safe haven” asset in the first place.

We Shouldn’t Question BTC’s Status

Jeff Dorman – chief investment officer at Arca – challenges both these claims, saying that bitcoin has never – and will never – be anything other than a “safe haven.” He claims it’s still a solid way of retaining wealth should the traditional financial system ever suffer or collapse, explaining:

We don’t believe the ‘BTC is a safe-haven’ narrative has changed at all. Bitcoin can still be a hedge to the risks in the financial system (reckless government spending, banking crises, fiat devaluation) without being perfectly negatively correlated to stocks… Risk can be measured in minutes, days, weeks or even years, but in the case of bitcoin, its safe-haven status may be defined in decades relative to the loss of purchasing power from fiat currencies over time. Over longer timeframes, digital assets remain completely corelated to all other asset classes.

Bitcoin has also seemingly aroused the interests of several new investors, as crypto exchanges have reported a wave of new crypto purchases in the past two weeks.

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