Bitcoin was under pressure, with the price dropping below US$6,037 at one point, as fear and volatility evidently spiked across the market.
At mid-afternoon in London, Bitcoin had rallied somewhat down US$141 or 2.26% changing hands at US$6,111.
Cryptocurrency evangelists have for some time envisaged Bitcoin as a store of value, and, similarly as a digital alternative to gold – so, as consolation, they may find some validation in Tuesday’s decline.
Amid the worst of the morning’s selling, both Bitcoin and gold were on the slide.
“No safe haven bid for gold in the current EM crisis we see in Turkey et al. Equally there is no safe haven bid for cryptos,” said Neil Wilson, analyst at Markets.com.
“The meltdown has continued and we are seeing Bitcoin breaking below key support at $6000.
“The next level lower is a long way to drop. The various altcoins are also taking a beating. The puts paid to the notion of cryptos as a safe haven play in a broad risk-off sense.”
Wilson added: “Rather, like gold, this looks to be a function of dollar strength. Ultimately USD and US Treasury notes are the only real safe harbour.
“Indeed, US ten year yields seem pretty well anchored below 2.9% and the ongoing stress in EM should maintain a slight bearish bias for US yields.”