Bitcoin Painfully Sank Below $5k as Market Further Crashes
Bitcoin (BTC) and the broader part of the cryptocurrency market continued the week’s sharp fall. The world’s largest crypto dropped to as low as $4,800.
In addition to that, the crypto space echoed the broader global trading markets. And equities have been in free-fall mode. It suggests another halt to trading. This is due to the S&P 500, experiencing another 9.5% fall on Thursday.
Also, the Dow Jones Industrial Average suffered a 10 percent drop. And tech-heavy Nasdaq is down 9.43 percent to about 7,201 basis points.
Then, in Asian Markets, they fared no better as the Australian ASX All Ordinaries dipped 7.23 percent. Tokyo’s Nikkei 225 dropped 4.4 percent, and it might further slide into deeper losses because of the coronavirus pandemic.
Around $63 billion has been slashed from the markets as the total market capitalization of every crypto slipped from $223 billion to $161 billion. Bitcoin lost over 39 percent over the past day to levels not seen since April 2019. Other crypto assets, like Ethereum (ETH), is currently at $109 and XRP is trading at $0.14.
Since December 31, 2019, balances with 100 or more Bitcoin have sunk to their lowest point. And this hints a flight to cash as other supposed safe-haven assets such as gold dropped 3.5 percent.
For the near-term, investors see major volatility. But, a lot of them are showing optimism when considering the long-term.
CEO of BCG Group Oliver von Landsberg-Sadie stated, “Not a market for the faint-hearted. Staggering losses all round.”
He also said before the halving, they would have a half-price sale, which won’t last long. The market became oversold due to global economic jitters, and it is not too hard to see a short-term correction.
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Hope of Crypto
Nevertheless, there is still a slight glimmer of hope for those high net worth individuals who continue to put in buy orders for Bitcoin. According to Landsberg-Sadie, this will happen even though economic turmoil is happening all around.
The CEO revealed that the 4 are all purchase orders. And out of the high net worth individual buyers, two are from the U.K. and one is Swiss.
Aside from that, others are saying that it was the long-term perspective on crypto that offered more encouraging returns on their investment. At the same time, traders are waiting for the bloodbath in global markets to conclude.
Founding partner and Co-CIO at Eterna Capital, Asim Ahmad, said, “In the long-term, we see this period as an opportunity for many investors to get exposure to the asset class at attractive prices.”
Saga Foundation’s founder and chairman of the board, Ido Sadeh Man, explained that conditions from a macro perspective seem shaky at best. It looks like the near future will become hyper volatile and chaotic too.
From what Man says, this will only further weigh on the global economy and hurt the pockets of individuals.
“The only available tool for corporates and households alike is to look at diversification strategies of their assets and currencies, to protect and preserve their value.”
Going to the technical side, Bitcoin has broken down from a head-and-shoulders pattern, which has been staring down traders since initial breakdown last March 8. It was down from $8,900 to just below $8,000.
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