Bitcoin has severely dropped down during the last week, losing almost half of its current value as the global markets continue to fall in chaos.
Bitcoin’s (BTC) price went down by almost 50% last night, reaching the lows of $3 637 per Bitcoin. The sharp decline seemed to be a short move as the price rebounded to over $5 000 within an hour.
The total value of the entire cryptocurrency market fell around $93.5 billion within 24 hours, according to data from Coinmarketcap.
Following the fall of the world’s largest cryptocurrency, other top coins suffered relevantly severe price drops tonight. Ethereum (ETH) fell down to $95, while Ripple (XRP) tested the bottom of $0,11 before the rebound up to $132 and $0,15 within an hour. Bitcoin Cash plummeted to $139 at 04:24 UTC, quickly bouncing back to $166.
Massive panic sell-offs
The Covid-19 pandemic pushed the global markets in panic. The fall in cryptocurrency markets mirrored the massive sell-offs in equities as the governments continue to take tough actions against the spread of coronavirus.
The Dow Jones Industrial Average (DJIA) plummeted 10% on Thursday, marking its biggest one-day percentage drop since the Black Monday stock market crash in 1987. The Nasdaq closed 9.4% lower. The S&P 500 dropped 9.5% joining the Dow index in a bear market.
With the panic spreading across global markets, even the gold is not the exception. The price of the traditionally considered safe haven crashed down as traders and investors backed away from all trading markets.
You have to go down to go up
Since the global pandemic continues to disrupt countries and businesses, investors expect major volatility in crypto markets as well.
Peter Brandt, a veteran crypto trader, tweeted last night his predictions of Bitcoin’s floor level:
If I interpret the chart without bias, I would say sub $1,000— Peter Brandt (@PeterLBrandt) March 12, 2020
However, other digital asset investors and traders express optimism when considering the long run.
Arthur Hayes, the CEO of cryptocurrency exchange Bitmex wrote in his market report, that since fear and uncertainty is enough to inspire a global margin call, Bitcoin will not escape it as well. According to him, crypto hedge funds will be dumping coins into a falling market, which will push the price lower on the margin. However, he also expressed his beliefs of bright future:
Bitcoin should enjoy a nice run back through $10,000 towards $20,000 by year-end.
Although it is difficult to predict markets in times of panic, the experts believe that they are just changing with whatever way the sentiments are.