In what was a very turbulent day for global markets, cryptocurrencies were among the hardest-hit assets, with Bitcoin falling 15%, its worst day since June 2022.

This steep decline has reignited debate over Bitcoin’s reputation as a ‘safe haven’ asset and a hedge against market uncertainty.

Bitcoin’s sharp decline followed a weekend of intensified selling across broad markets. The Dow Jones Industrial Average fell as much as 1,000 points on Monday, adding to Friday’s 611-point decline. Meanwhile, the tech-heavy Nasdaq Composite fell as much as 6% at one point. In this environment, Bitcoin dropped up to 17% of its value, causing investors’ concerns.

During periods of market turmoil, Bitcoin is often expected to defy broader trends. However, crypto investors and analysts argue that Bitcoin’s versatile nature makes it both a risk asset and a store of value. “Bitcoin is a hedge against uncertainty, it’s also a risk asset, it’s also an investment for interest rates, so many things. In a way, because of the diversity of its trends,” Noelle Acheson, economist and author of the “Crypto Is Macro Now” newsletter, told CNBC. “That’s why it tends to have a firmer footing than other risk assets like stocks.”

Despite recent losses, Bitcoin is up nearly 20% for the year compared to the S&P 500’s gain of 9%.

Before this weekend’s turmoil, Bitcoin found support around $55,000 but had difficulty breaking the $70,000 ceiling. Acheson suggests that this support level could attract value investors. “Value investors will see $55,000 as a very good price to take a position, especially if Bitcoin is to be a hedge against world structure turmoil over the long term,” he added.

*This is not investment advice.