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A Bad Day for Bitcoin

Benson Toti

Bitcoin has plummeted today, losing 20% of its value within just an hour. It is believed that the ongoing COVID-19 pandemic is the cause.

As has been previously reported, the recent viral outbreak that is closing businesses and schools due to large cases of self-isolation, is now having a very serious effect on the markets. Bitcoin, which has never had to deal with a market-selloff is now finding itself in uncertain waters.

From February this year, the correlation displayed between Bitcoin and the stock market was undeniable. Those who have resisted seeing Bitcoin as a safe-haven asset, believe this relationship between markets shows BTC to be more of a high-risk investment. 

Bitcoin Falls
Courtesy of Bitcoin Market Journal

Datamish.com reported that the $2,100 hourly candle has liquidated a massive $665 million worth of long trades. If data taken from all major exchanges is combined, this figure reaches almost a billion dollars. 

The value of Bitcoin is extremely susceptible to news, causing some to speculate that the announcement that COVID-19 is now officially a pandemic has acted as a catalyst for the price drop. As Bitcoin tanks to a value that it hasn’t experienced since some of its dark days of 2019, it will undoubtedly carry a lot of altcoins with it. 

This will be a troubling time for investors in Ethereum, whose price had already begun to drop in the last few days. Bitcoin Cash has also shed a third of its price due to the hardship suffered by its bigger brother.

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