By Yasin Ebrahim
Investing.com – Bitcoin's fledging status as digital gold has come under fire as the popular crypto continued to languish at near three-month lows after traders flocked to safety.
Bitcoin (GDAXUSD) fell 6.75% to $7,810 and remained close to session lows of $7,700, the lowest level since Jan. 10.
The selloff is "another proof that Bitcoin is NOT a good hedge vs risky assets in risk-off episodes," claimed Nobel-winning economist Nouriel Roubini. "It actually falls more than risky assets during risk-off. So BTC is a (s----- s---coin) hedge in risk-off cases."
Bitcoin has sold off more than 25% since Friday, with as much as $26 billion wiped from its market cap.
Still, there are some who continue back the popular crypto as a long-term bet.
"For those who have long term investment horizons, bitcoin is absolutely a buy during these dips," Jehan Chu, co-founder of Kenetic Capital, an investor in blockchain startups told CNBC. "We can expect more of this volatility sparked by macro health and financial shocks, but ultimately long-term investments in the digital future and it's key asset Bitcoin will be a winning strategy."