The price of Bitcoin (BTC) has at times fallen by more than 40 percent in the past 24 hours, while BTC is currently trading at around only 4,000 US dollars. Analysts give various reasons for the rapid fall in value.
Investors in Bitcoin (BTC) are experiencing a crash at the end of the week, reminiscent of the crypto winter of 2018/19. A BTC is currently worth less than USD 4,000 at times, and the trend is unclear. Assumed support levels such as 8,000 US dollars have proven to be unfounded. In the wake of the lead currency Bitcoin, all other important old coins, with the exception of stable coins, are also falling into a bottomless pit. Experts in the US media are trying to find explanations for the panic in the markets, but have not come to a uniform thesis. We summarize:
Why Bitcoin ud Co. is currently plummeting
- The market for Bitcoin is dominated by North America. There, US President Donald Trump has announced a temporary entry ban for Europeans because of the corona virus. This deep cut in the global economy has also sent the classic stock exchanges worldwide into a downswing, and BTC as the leading currency among the crypto currencies cannot escape this trend.
- For many analysts point out that meanwhile several professional traders are co-determining the market for Bitcoin and Co. These are now in a situation where positions have to be liquidated to fulfill obligations elsewhere.
- The demand for BTC is proving weaker than expected, sales far outweigh the demand for replenishment of depots.
- Many investors had bet on rising prices and even new highs for BTC, knowing about the upcoming Bitcoin Halving. Bitcoin Futures and Margin Trading do the rest in such a situation, from a single-digit area of price decline to a double-digit one.
Is a freezing cryptic summer 2020 looming?
Attempts to explain the rapid fall in prices on the crypto markets will help investors who are dependent on liquidity, at best with hindsight. There is currently panic, fuelled by the hardly foreseeable consequences for the global economy caused by the coronavirus. In the last few days, the virus has already shown its effects on the oil price and has provoked a price war between the most important producing countries, Russia and Saudi Arabia. In such a situation, at least two findings are evident:
- The price of BTC and, in its wake, the bulk of Altcoins cannot escape the global news situation and trends on classic stock exchanges. This contradicts in part the original concept of Bitcoin.
- When writing these lines alone, the price of BTC fluctuated between 3,900 and 5,100 US dollars within an hour. At more than 50 billion US dollars a day, the market is volatile to a high degree. Some traders are just about to gild their strategies, while others are cursing.
- Soberly considered, it is also worth noting: There were no support points for BTC, and this time the price fell rapidly over time. In comparison, the cryptoviinter 2018/19 was a much slower developing situation.
Unfortunately, we cannot predict here and now whether new ground marks will be created for the price of BTC. But under the motto “The Trend Is Your Friend”, there are two logical options for you: With Hodl, many investors in crypto currencies have already done well, and this should be repeated this time. And it will hardly be cheaper than just now to increase your deposit or invest in Bitcoin for the first time. The price decline of BTC has no technological reasons, it is infected by the corona virus and will in all probability recover from this fear in the near future.