Cryptocurrency topples under global market pressure

Highlight:-

  • Bitcoin faced a $1000 fall in its valuation in just 15 minutes
  • Crude oil prices have tumbled by 31% in a week

Due to the recent development, and the fear caused by the global outbreak of coronavirus, the commodity prices are on a downhill spiral, and thus the global market is taking a heavy hit. Crude oil prices have tumbled by 31% in a week closely followed by natural gas. With the recent development, it was a question of when and not if the market would affect cryptocurrency.

The unstable situation in the market over the coronavirus development has worked as a slow poison for the cryptocurrencies, in which Bitcoin is the one cryptocurrency that has faced the strongest fall. In a week Bitcoin lost 30% of its value and faced a $1000 fall in just 15 minutes after the trade kicked off.  A month ago Bitcoin was trading at 10,000 USD per coin, but it had nearly lost half its value and is valued at 5068 USD per coin.

However the experts claim, this is just the hype the market faces, the market currently runs of sentiments and not on technical knowledge and logic, the recent outbreak has caused mass hysteria amongst the traders and thus they are opting to be safer, rather than being patient, this quick withdrawal of cash or sell of stock is leading to further weakening the market, as there is insufficient active running capital in the market.

The experts also believe, until there are concrete evidence of vaccines that can be used to cure patients, it is likely the market wouldn’t improve quickly, once the cure is found the market recovery would be very fast as there is a lot of money waiting on the sidelines to enter the play.