Bitcoin plunged below the key $10,000 level on Thursday in Asia following declines in global stocks.
The world’s most popular cryptocurrency slumped 8.1% to $9,784.0 by 1:01 AM ET (05:01 GMT). Other major cryptocurrencies also traded sharply lower. Ethereum plunged 14.01% to $182.16, while XRP and Litecoin traded 14.9% and 16.1% lower respectively.
The reason behind the price movements was unclear.
In the past weeks, Bitcoin showed a high correlation to traditional haven assets such as gold or the Swiss franc, and an equally high inverse correlation to risk assets such as stocks and industrial commodities.
Traders debated whether the largest cryptocurrency is a safe-haven as it surged last week when global stock markets fell amid Sino-U.S. trade tensions.
However, on Thursday, Bitcoin and other major cryptocurrency prices slumped even as Asian stocks markets traded lower and major indexes in the U.S. closed down more than 3%.
The fall is the worst single-day loss since early July.
Analysts have warned that moves in Bitcoin below the key $10,000 level would dent the prospect of a rebound.
“Any such retracement (in bitcoin) from $12,916-$13,971 should be viewed as an opportunity to buy on weakness as long as it doesn’t retrace further than the $9,084 low,” Goldman Sachs said in a note.