Bitcoin fell by 7% in a day as coronavirus continues to spread across the globe. Since the pandemic, the market situation has not been very friendly and all sectors have been affected including the crypto sector.
Bitcoin sudden drop
The sudden drop of bitcoin by 7% translates to $1.4k just on Monday. That follows an 8% loss the previous day. That means that from Sunday the 15th, the price has dropped by 15%. The volatile market conditions have made the crypto giant to trade at around $4550.
Normally, such a situation would create reactions to deal with the situation. With the coronavirus pandemic, it is complicated as lockdown is expected in most places to deal with the pandemic. There are, however, many traders and stocks that were expecting the second black Monday. So, it did not strike them as a surprise.
All asset classes have been equally affected, making the liquidation to be very low. Even safe assets such as gold have been adversely affected.
According to a Cointelegraph analyst, bitcoin was meant to be anti-inflationary but is still heading to big inflation risk. It must go through the process before it achieves the level of being anti-inflators.
Tough times for Bitcoin
According to an expert trader, Tone Vays, Bitcoin is still on a downward trend. According to him, the trend would lead the BTC/USD to be even 50% lower, but at a slower rate.
According to him, Monday the 16th is among the most critical days for Bitcoin and the market s very bearish. He believes that the market will be on the watch for the new daily low close.
Some investors are blaming BitMEX, which is a derivative giant, for being responsible for the bitcoin crash that happened on March 12.
The crypto scene has generally been affected. Other digital tokens have also experienced losses. Ethereum, XRP< Litecoin and Bitcoin cash all fell getting losses of between 5% and 12%.
Despite the US Federal Reserve trying to bring out a stimulus, people are more concerned about the COVID-19, making them have more fear than greed.
According to eToro, the crypto market is currently mirroring the traditional market. The crypto market, however, is at an advantageous position since the factors that influence it are less. For example, politics would have more adverse effects on the traditional markets as compared to the crypto market.