Bitcoin fell 3% on Friday, giving up early gains as its recovery from this week’s massive plunge shows signs of faltering, according to Reuters.
Bitcoin fell to $39,262 on the Bitstamp exchange. That is roughly 30% above its Wednesday low, but just below its 200-day moving average. Rival cryptocurrency ether also came under pressure on Friday, falling 2% to $2,714.
The offloading in the crypto world has coincided with a surge in gold, which has hit 4-1/2 month highs and is on track for three straight weeks of gains, rising 1.8% so far this week.
A narrative of bitcoin becoming „digital gold” had gained traction earlier this year, with JPMorgan saying in January that bitcoin emerged as a rival to gold.
Societe Generale questioned the comparison on Thursday: „Bitcoin has clearly ‘outshone’ gold both to the upside and now also to the downside. But with such a gap in volatility and amplitude, does it make sense to compare the two assets at all?”
Ether is down 24% for the week and bitcoin down 15%. The selloff also spilt over into equity markets on Wednesday, more so in companies with high exposure to cryptocurrencies, such as Coinbase. Coinbase is down 10% this week.