Bitcoin falls below USD 6000
The coronavirus not only hits the traditional markets with full force, but also infects the entire crypto market. After a price slump of around 23%, Bitcoin is even slipping below the important USD 6000 mark in some places, and the old coins are recording new lows. Investors pull over USD 50 billion out of the market in just 24 hours. A dramatic day for the entire crypto space. Let’s take a look at the current events.
Bitcoin price in detail
At the time of writing, Bitcoin is quoted at USD 6056. This value corresponds to a daily loss of about 22%. All support areas have been pulverized in the past hours. Only at the 6000 USD mark did the price stop temporarily before reaching a daily low of 5600 USD on the BitMEX exchange. Subsequently, however, the No.1 crypto currency jumped back above the 6000 USD mark. The enormous sales reflect the current market situation. There is panic and investors are pulling their money out of the volatile market.
FUD as multiplier
FUD (Fear, Uncertainty and Doubt) refers to the panic behaviour of investors. If such panic meets a tangible crisis such as the one we are experiencing at the moment, it can have devastating effects on the entire market. Although the fundamental properties of cryptos have not changed in recent days, the corona virus is leaving its mark on all financial markets. Now fear, uncertainty and doubt are hitting a highly volatile market and the result could hardly be worse. Due to the enormous dump, the BTC falls back to its May 2019 level.
Altcoins in the crisis
The Altcoins will be hit even harder than the “digital gold” on Thursday. Ethereum falls to a limp 144 USD, Bitcoin SV is down over 33% and Ripple slides to 0.15 USD. Chainlink is even suffering an interim flash crash on Binance, with the “Oracle currency” recording a low of USD 0.01 before a rescue pullback set in.
The numbers are frightening. In Italy alone, 2651 new cases and 189 deaths were reported today. Worldwide, 133445 cases were registered (4950 deaths). In Germany there are 2693 confirmed infected persons and 5 deaths to date. Meanwhile, the ECB has adopted a complex package of measures to address the economic consequences of the corona crisis. Among other things, this is to include emergency loans for banks and higher bond sales.
What is the next step?
If one only applies this question to the crypto-market, it must be noted that the recent slumps point to acute instability. Bitcoin is far from being a crisis-stable “store of value” and the crypto space is a highly speculative patch that invites risk-averse investors in particular. Minus 2000 USD in 24 hours are on the books today, Thursday. Serious statistics that give little hope. But one should focus on the essential things.
Keep a cool head
We are in the midst of a serious economic crisis. The traditional markets and crypto-space are suffering the consequences of the corona spread and both are dependent on the course of this pandemic. Ultimately, the fundamentals are not changing. The decentralization and all the use cases of the block chain technology will remain. The Bitcoin Halving Event will take place, unlike other “big events”, and Ethereum 2.0 is in the starting blocks. These factors should be thought about before joining the panic sellers. On the other hand, there are the investors, who see their chance right now. “Buy the Dip” is the motto. But when will Bitcoin reach its bottom? In order not to put your hand in the falling knife, a comprehensive market analysis is recommended these days more than ever.