BTC/USD: With its 10% plunge this week (in light of Corona virus panic), BTC proves it's not a refuge asset

Bitcoin has dashed hopes that cryptocurrencies have begun to function as a safe haven due to its plunge since the beginning of the week.

The price of Bitcoin has dropped 10% in the last few days, and many major cryptos, including ethereum, Ripple's XRP, litecoin and Bitcoin cash, have recorded even greater losses.

The price of Bitcoin fell Wednesday night to $8,519 on the Luxembourg-based Bitstamp platform after hitting $10,000 last week and losing around $30 billion in overall capitalisation.

Bitcoin's plunge and the collapse of the cryptocurrency market comes at a time when global equities are collapsing due to the spread of the new virus.

U.S. stocks appear to be heading for further declines despite efforts by Donald Trump to ease concerns about the virus outbreak.

The U.S. President called on his VP to lead the country's efforts against the disease, but said the risk to Americans remains "very low" even though health officials warned that the disease is spreading following confirmation of a first case of unknown origin in California.

The Dow Jones Industrial Average lost over 1,950 points this week, falling for the fifth consecutive day on Wednesday, along with the S&P 500. The Dow, meanwhile, is on track to achieve its worst weekly performance in terms of percentage points in 12 years..

Bitcoin has made a good start this year, breaking above the psychological $10,000 per bitcoin mark, first on geopolitical fears of escalating tensions between the United States and Iran, and then apparently on fears that the new virus could hit world trade.

With Bitcoin's latest fall in the face of global market turbulence, the theory that it had begun to act as a safe haven with gold and the Japanese yen now seems exaggerated.

Daily Bitcoin chart