As usual, after each major Bitcoin (BTC) incident, analysts argued over the reasons behind, and this time was no exception.
But this time, the answer is simple, at least from the perspective of Bitcoin bull and Galaxy Digital CEO Mike Novogratz. In one tweet On March 13, Novogratz said:
"Bitcoin has always been a game of faith. That's all cryptocurrencies. And global belief in anything that has evaporated. "
The corona virus pandemic has rocked the global market, and competition among oil-producing countries only added to selling pressure. When investors are liquidating their assets insanely, even names that are considered safe havens will inevitably suffer.
While Bitcoin has suffered a massive decline of up to 40% today, gold also saw a significant drop, though not as big as BTC.
So, instead of living in a loss, Novogratz proposes that the real question now is how to bring confidence back into Bitcoin.
As Toiyeubitcoin reported, Bitcoin price quickly dropped to a record low of the year at $ 3,782 today, before recovering back to $ 5,200.
Therefore, the confidence of investors has not completely disappeared, and some people will still try to profit from the extreme fluctuations of Bitcoin at this time. However, in order for the markets to regain strong confidence, investors may have to wait until the current panic has passed.
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According to CoinTelegraph
Translated by ToiYeuBitcoin