Cryptocurrency market today, December 5: Bitcoin is still a mystery to investors

(NLDO)- After falling sharply from its recent record high, Bitcoin has wiped out all of its gains since the beginning of the year.

On the evening of December 5, the cryptocurrency market fell across the board. Data from the OKX exchange showed that in the past 24 hours, Bitcoin fell more than 2% to $90,615.

Other coins such as Ethereum, BNB also decreased by more than 2%, to 3,110 USD and 887 USD respectively; XRP decreased by more than 3%, to 2 USD, while Solana decreased the most, nearly 5%, to 136 USD.

Bitcoin has wiped out all of its year-to-date gains after falling sharply from its recent record high, according to CNBC.

This raises a big question about the coin's true role in an investment portfolio: When can Bitcoin be considered a stable store of value?

Bitcoin is trading at $90,615 Source: OKX

"Bitcoin still needs to prove its ability as a 'digital gold' in the long run," said Nate Geraci, President of NovaDius Wealth Management.

He emphasized that Bitcoin is only 15–16 years old and still highly volatile, while gold has been around for thousands of years.

In the past, Bitcoin has rallied strongly when the stock market fluctuated, but recently, when tech stocks fell, most cryptocurrencies, including Bitcoin, also fell, even deeper than the stock market.

Still, Bitcoin has doubled in value since early 2024, thanks to inflows from new Bitcoin ETFs.

Geraci believes the recent drop was largely due to investors using leverage in crypto trading, leading to the sell-off.

In addition to Bitcoin, crypto index funds - which invest in a basket of many cryptocurrencies - are expected to help investors diversify their portfolios.

However, he warned that most other cryptocurrencies are still like tech stocks, prone to market declines and are high-risk assets.

Source: https://nld.com.vn/thi-truong-tien-so-hom-nay-5-12-bitcoin-van-la-an-so-voi-nha-dau-tu-196251205212855735.htm