By Suvashree Ghosh and Sidhartha Shukla

(Bloomberg) -- After a week-long rout that erased hundreds of billions in digital-asset value, Bitcoin has again failed to live up to its billing as a safe harbor asset.

Once cast as a hedge against market turmoil — a “digital gold” for the blockchain age — the original cryptocurrency continued its slide on Friday morning in New York, dropping as much as 4% to $103,550, according to data compiled by Bloomberg. Ether, the second-largest token, slipped under $3,700 and has now retreated around 24% from its August peak.

Most Read from Bloomberg

• Affordable Housing Left Vulnerable After Trump Fires Building Inspectors

• Los Angeles County Declares State of Emergency Over ICE Raids

• There’s a Better Way to Win on Traffic Safety

Meanwhile, the Binance-linked token BNB tumbled as much as 11% on Friday. The world’s largest crypto exchange was cited by analysts as a key driver of the record spree of liquidations on Oct. 10 and 11 as users encountered technical glitches and price discrepancies. Binance has offered customers and businesses nearly $600 million in compensation following the crash.

Bitcoin struck an all-time high of $126,251 as recently as Oct. 6. Days later, more than $19 billion in liquidations sparked by escalating US-China trade tensions coincided with a sharp selloff that encompassed most major tokens.

The fall in BNB on Friday “seems in line with the larger market selloff for now,” said Yoann Turpin, co-founder of crypto market maker Wintermute. The activity is also likely a sign of repricing, Turpin said, after a surge mid-week failed to form a lasting recovery.

Heavyweights including Kraken, Circle, BitGo and Ripple are pushing deeper into regulated finance — seeking trust charters, payment rails and card products. “What’s striking is the timing of the crash coinciding with major players pursuing banking licenses,” said Rachael Lucas, analyst at BTC Markets. The pivot to traditional financial infrastructure “signals a strategic hedge against volatility, aiming to build legitimacy,” she added.