Bitcoin Vulnerable to IMF Comments Falls

Oct 11 13:10 2018 Print This Article

Bitcoin’s role as a “safe haven” asset in turbulent times is looking more unlikely.

As the U.S. stock market saw its biggest drop since February on Wednesday, the largest digital currency dropped 6 percent along with it. Bitcoin, sometimes referred to as “digital gold,” and other top cryptocurrencies wiped out $13 billion of value in a matter of hours, according to data from CoinMarketCap.com.

Other top cryptocurrencies followed bitcoin’s lead, with XRP and ethereum both tumbling more than 10 percent. The downward moves came after the International Monetary Fund warned that cryptocurrencies “could create new vulnerabilities in the international financial system.”

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Bitcoin proponents have billed it as a store of value, or “digital gold,” and a possible replacement for traditional currencies.

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