Bitcoin Price Drops Below $5K as Market Pain Worsens
March 16, 2020
Bitcoin Price Continues to Bleed
The cryptocurrency market has been experiencing a torrid time in the past few weeks, and yesterday’s sell-off was one of the largest in the history of the industry. The price of Bitcoin briefly sank below $4,000 before rebounding to between $5,300 and $5,500 within 30 minutes on Thursday, March 12.
The price of Bitcoin and the other cryptocurrencies have been dropping over the past 24 hours, with most of them experiencing their largest single-day loss. The BTC price plunged to $4,800 to echo what is happening in the broader global financial markets.
The coronavirus outbreak is currently having a negative effect on the global economy. Equities have been on a free-fall mode for the past few weeks, which led to the stock market halting trades after the S&P 500 lost 9.5% during the day. The Dow Jones Industrial Average also lost 10% of its value throughout yesterday’s trading session. Also, the tech-heavy NASDAQ fell 9.43%, which concluded another bad day in the office for the stock market.
The losses extended to the Asian market where the Australian ASX All Ordinaries fell by 7.23%, and Tokyo’s Nikkei 225 fell by 4.4 percent during the trading hours. The market indices are expected to continue recording losses over the coming days as the coronavirus pandemic hits more countries and affects more people globally.
The effects of the virus have also slipped into the cryptocurrency market, with over $63 billion lost over the past 24 hours. The market cap of the crypto space dropped from $223 billion to $161 billion as Bitcoin lost 39% of its value within a few hours. This is the lowest BTC level since April 2019, with the gains recorded earlier this year all but gone.
The other leading cryptocurrencies are not faring any better. Ethereum is trading just above the $100 mark, while XP dropped to $0.14 per coin. Wallets containing 100 or more BTC have dropped to their lowest levels since December last year, with more people converting their cryptos to cash instead of safe-haven assets like gold, which is down by 3.5% over the past 24 hours.
In the short-term, investors and analysts expect further volatility in the prices of Bitcoin and the other digital currencies. However, most people are optimistic when it comes to the long-term prospect of the market.
The chief executive of BCB Group, Oliver von Landsberg-Sadi, stated that this is not a market for the faint-hearted, with the staggering losses affecting all investors. Landsberg-Sadi added that with the halving of Bitcoin only around the corner, it is as if we are currently experiencing a half-price sale. He also stated that this will not last long as the market is currently oversold as a result of correlated global economic concerns. Landsberg-Sadi also stated that a short term correction can be expected.
Despite the current dip in price, things could change in the short-term. Landsberg-Sadi pointed out that high net individuals were making large purchase orders, which could help push the prices higher over the coming days or weeks.