• The most popular cryptocurrency by market cap traded lower amid coronavirus fears
  • BTC is down for the third straight days which mirrors the declines of global stocks
  • Traders and other market observers argue whether Bitcoin should even be called a safe haven based on its recent performance

Last month, there had been much talk around the crypto community about how Bitcoin (BTC) correlates to gold, especially when it appreciated amid the tensions between the U.S. and Iran.

That was also the case in February when Chinese stocks reopened for trading, and the coronavirus fears dragged it lower to its 10% daily limit within minutes. BTC, on the other hand, moved inversely, reaching its new high at that time at $9,600.

Gold and other safe-haven assets usually appreciate as investors pull money out of riskier ones in favor of them during economic stresses, and some crypto observers think that BTC is making a case for its dependability in similar tough times. But that doesn't appear to be the case lately.

Stocks are down -- for the third day. The dreaded COVID-19 led the Dow to tank more than 1,000 points on Monday, and the S&P 500 and Nasdaq 100 lost over 3%. The global market, overall, shed off $1.7 trillion, according to CNBC. The story didn't change much on Tuesday as the market resumed its fall, and Asian stocks on Wednesday also closed lower.

And as gold reached a seven-year high on Monday, the presumably new safe-haven asset, Bitcoin, dropped 3% and followed the slump that stocks have been stuck on. For a third consecutive day, the leading crypto is in the red and currently trades 2% lower, per Bitstamp prices.

Traders question if the nearly 9% decline that Bitcoin started since the start of the week is a result of the asset lingering at overbought levels for too long or driven purely by coronavirus fears that affected the rest of the macro assets.

Some have asserted that it weakens the crypto's argument as a safe haven.

Jeff Dorman, the chief investment officer of the crypto-focused firm Arca Funds, told Coindesk, "It's irresponsible for anyone to say that bitcoin is truly a safe haven."

"Look at how gold and Treasuries and equities react instantaneously to global fears. Bitcoin and digital assets live outside that work flow," he added.

BTC now trades $9,128 as of writing and is in danger of closing below $9,100 or past the 50-day MA.

A file photo of a visual representation of the digital Cryptocurrency, Bitcoin on October 23, 2017 in London, England. Dan Kitwood/Getty Images