What Triggered A Record Drop In Cryptocurrency?
The cryptocurrency market is now in a precarious position. Daily there is information about the fall of a particular digital currency. Of course, the most expressive example is the market behavior of Bitcoin. The cost of the most popular currency decreased by 13%, which amounts to $ 1,200. Although this situation provoked an increased interest in buying Bitcoin, analysts warn that not everything is so simple. After a sharp fall on Monday, March 9, the price of Bitcoin rose slightly to $ 7,950. According to experts, this may be a temporary phenomenon.
Under such conditions, cryptocurrencies have shown their dependence on Bitcoin. After the fall of the most popular digital currency, a sharp decline in bitcoins followed. Since March 7, the market capitalization of the crypt has decreased by 36 billion. dollars.
Assessing this situation, analysts refuse to blame only the spread of Coronavirus for the crypt fall. The epidemic was the impetus for starting processes that were already hanging in the air. Rising rates on stock exchanges, oil prices were designed artificially. The coronavirus only opened the curtain to all the problems in the financial market, which were carefully hidden from the world community.
The decadent mood of the cryptocurrency market participants is reflected in the Crypto Fear & Greed Index. This indicator fell by 16 points. Bitcoin volatility warms up the situation and provokes an even greater depreciation of the digital currency. The actions of institutional investors largely depend on the situation in the traditional market.
Also, the reasons for the fall of cryptocurrency lie in the growing negative conjunction of the world market. The cryptocurrency depreciation is indirectly associated with a sharp decline in oil prices. After a cheaper barrel of oil, investors lose interest in assets that are not resistant to changes in market conditions.
But do not forget about Coronavirus. Some experts suggest looking at the epidemic from a different angle. In their opinion, Coronavirus could trigger an increase in the price of the cryptocurrency in the near future.
Now all the attention of analysts is focused on the stock exchanges. The rise in stocks in price may be a green signal to increase the value of Bitcoin. Against the background of growing problems in the global market, bitcoin halving, its possible consequences are so far fading into the background.