Today, against the backdrop of falling traditional markets, the price of bitcoin fell by more than 20% and touched the $ 5570 mark, but then stabilized around $ 6000. As the spread of the coronavirus accelerates, the situation could worsen even more..
The panic generated in the markets after the WHO recognized the coronavirus epidemic as a pandemic was strengthened by Donald Trump’s decree to restrict travel to Europe. As a result, during the Asian trading, another wave of falling stocks, bonds and indices began..
Investors began to hastily liquidate their positions to meet margin requirements, avoid further losses, and avoid additional risks. Exception only gold has become, the price of which remains at the same level, as a classic asset for saving value.
Under normal conditions, bitcoin and digital assets were used to diversify the portfolio and hedge, but amid the panic, investors began to hurriedly sell them due to the high level of risks and falling liquidity of the crypto market. The decrease in interest also caused a decrease in the trading volumes of bitcoin futures..
As a result, against the backdrop of global panic today, the bitcoin rate fell below $ 6,000, but then rebounded and the market is trying to avoid a further decline. At the time of publication of the PTS trading at $ 6114 with a daily drop of 21.9%
Most altcoins suffered even greater losses. Over the past 24 hours, Ether (ETH) fell 27.4% to $ 141, XRP shed 19.9% to reach $ 0.166. In general, the cryptocurrency market lost more than $ 51 billion per day.
This time, the market collapse was caused not by the actions of institutional participants, but by global non-economic factors, the development of which cannot be predicted..
As a reminder, CME announced a temporary suspension of trading activities due to coronavirus.
text: Ivan Malichenko, photo: Shutterstock, charts: TradingView, CoinMarketCap
Bitcoin Price: Currency’s Market Dominance Grows Stronger