Within minutes, Bitcoin erased its accumulated profits in 2020.
King coin has dropped to $ 6,116 on Coinbase for the first time since May 2019. This slumping move caused the market capitalization to drop by about 30% to $ 111 billion, recording one of the biggest declines since its inception in 2009. The high level of BTC of the day was 134.7 billion dollars.
Bitcoin dropped 30% in just 30 minutes | Source: TradingView.com, Coinbase
The latest data shows that the bearish move comes soon after the BitMEX derivative platform liquidates long-term XBT / USD positions worth $ 680 million. The spillover effect caused traders on all exchanges to panic on spot spot sales. The CryptoCompare data portal shows an average of 11,000 transactions per second.
“In 2 Last minute, we see more than 11K traded every second on 230 exchanges".
Panic psychology is also spreading throughout the cryptocurrency market. The 30-minute crisis of BTC has cost rival altcoins 23 billion dollars in the market. In particular, ETH lost 35%. Subsequent tokens like XRP, BCH and BSV also fell in the range of 21 to 38%.
Bitcoin is no longer available is “digital gold”
Peter Schiff, CEO of Euro Pacific Capital, said the air is coming out of the Bitcoin bubble and repeatedly saying that cryptocurrencies are not a safe haven asset as promised before the growing Corona virus.
As #Bitcoin crashes below 7K hodlers going down with the ship can no longer take comfort in Bitcoin still being up for the year. As the air continues to come out of this bubble, the faithful will always be able to point to a past date from which the price of Bitcoin is still up.
– Peter Schiff (@PeterSchiff) March 12, 2020
"When Bitcoin went down below 7K, hodler Do not expect Bitcoin to increase this year. Gold is still up about 8% compared to the beginning of the year, while BTC decreased by about 10% and decreased rapidly. Bitcoin doesn't live with the hype that digital gold has. "
Divergence, convergence of the Gold, Bitcoin | Source: Bloomberg Intelligence
On the other hand, senior commodity strategist at Bloomberg Intelligence noted that both Bitcoin and gold were victims of a global sell-off trend when the US stock market fell to a record low. He predicted the crypto downtrend to be a temporary move. The analyst wrote:
#Bitcoin and #gold-price pressure caused by a rapidly declining stock market will prove temporary, as the quasi-currency companions should regain momentum once one of the swiftest declines in S&P 500 history subsides. The Bitcoin trend is toward gold-like price action .. pic.twitter.com/HgzWINrrbz
– Mike McGlone (@ mikemcglone11) March 12, 2020
“ASIANp force Bitcoin and gold price by The stock market is rapidly declining cause just the move temporarily, because the money will regain momentum when one species fastest decline belong S&P 500 suspended. Bitcoin's trend is towards price action just like gold".
He added that stock market volatility will act as a reverse wind for the rest of the commodity market.
The best time to buy Bitcoin?
ByteTree CEO Charlie Morris, who last week warned investors that Bitcoin may soon see some weaknesses, recently argued that it may now be the “least risky” moment when buy Bitcoin.
Indeed, quoted data The company's “Fair value” statistics are calculated from the ratio of the network value to the transaction value, he found the fair value of BTC currently at $ 6,400, meaning that it is priced. Significantly low when traded at $ 5,600 2 hours ago:
The two big risks in #bitcoin that concern me are valuation and the network. With $ 18bn of weekly spend, the network is thriving. As for valuation, it is back to fair value. This is the “least risky” time to buy bitcoin! It doesn't get much better than this. pic.twitter.com/TInkLHLre3
– Charlie Morris (@AtlasPulse) March 12, 2020
“Two major risks of the BiThe tcoin related to me is pricing and network. With $ 18 billion in weekly spending, the network is thriving. As for valuation, it returns fair value. This is the time “least risk" to buy Bitcoin! Khip There is nothing better compared to this".
Morris is not the only optimist in the context of suffering today. BitMEX CEO Arthur Hayes said in a market update shared with the industry about 5 hours ago that he expects the price of BTC to “move from $ 10,000 to the end of the year at $ 20,000.” Each central bank will cut interest rates to zero and announce quantitative easing to an open end. "
Still, LMAX's Joel Kruger still thinks prices will rise. He said in a recent interview with BlockTV that even if Bitcoin falls to $ 6,000 today, the strong HODL here will show that the macro uptrend is still intact.
You can see the price of BTC here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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