Bitcoin, amidst the current market meltdown, plummeted by around 50% of its value in a day causing distressed among global traders. This straightaway the capitalization of the market. Believing the data of Coinmarketcap, the entire crypto market plummeted around $93.5 billion in a day.
Since the WHO has declared Coronavirus pandemic, the investors are concerned about the future of crypto trade as the news has now majorly impacted the crypto and Blockchain market industry. As we know that Bitcoin has taken an observant drop plunging nearly 40% in the last 24 hours, it is also to be noticed that the cryptocurrency is trading below $9000 for the first time since January. The entire crypto market has never ever faced such a global financial meltdown.
The Real Reason of Abrupt Bitcoin and Crypto Market Crash
There is a piece of spread news doing rounds on the internet that the unexpected downfall of Bitcoin and Cryptocurrencies could be because of the Coronavirus. Since the virus has spread fiercely across Europe and the US, the panic among assets investors has escalated like a fire in the jungle.
Well, there is no denying that this deadly virus has affected many countries as well as different markets such as crude minerals, metals, stocks, etc. But is it the real reason behind the Crypto market fall? Let’s have a look at what trade analysts and market experts have to say and what according to them is the main cause of unforeseen failure.
The managing director of crypto-to-crypto derivatives platform Amulet, Marouane Garcon believes that the Coronavirus is one of the reasons why Bitcoin price suddenly dropped. He said – Most of the crypto is driven by the Asian market and the threat of virus is high over there.
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However, some believe that PlusToken, a scheme that affected the market of China and Korea is the reason for the market crash. The chief executive of CoinSwitch, Ashish Singhal opines that fraudsters may have then sold off the bitcoins, causing prices to fall as supply flooded the market.
Bitcoin and Crypto Market sudden Downfall – Highlight of the news
- Bitcoin price dropped by 50%, registering a massive fall in the history of price ditch. This is the world’s largest crypto falling in many years which is around $4800.
- The cryptocurrency market fell sharply to $93.5 billion within 24 hours which is the aftereffect of market capitalization.
- Many trade analysts believe that the fall in bitcoin is proof it is no more a so-called safe-haven.
- This sudden price fall of Bitcoin and Crypto market crash has caused distress amongst crypto traders and investors.