Bad, Bad Day for Crypto Investors
Cryptocurrency prices are known for their volatility yet any drop in value is still hard to stomach, as how most Bitcoin traders would have felt when the coin lost just about 50% of its value in just a day. Price dropped to nearly $3,800 after starting the day at $7,600, Bitcoin’s lowest value in nearly a year (https://www.forbes.com/sites/cbovaird/2020/03/12/bitcoin-lost-roughly-50-of-its-value-in-a-day/#315bae883056). BTC is not alone with the latest drop with ETH also losing about 50% in value to below $100 (https://www.newsbtc.com/2020/03/13/ethereum-eth-could-test-68/) while XRP suffered the similar fate by dropping to about $0.11 (https://www.newsbtc.com/2020/03/13/ripple-xrp-could-recover-from-0-12-after-a-massive-50-drop/).
Just about $93.5 billion was wiped out from the cryptocurrency market with the latest plunge, with a few factors being mentioned as the cause. Coronavirus is one of the main factor as it resulted in a significant sell-off in equities as number of cases globally surpasses 128,000 (https://www.cnbc.com/2020/03/13/bitcoin-btc-cryptocurrency-prices-plunge-after-stocks-record-fall.html). The Dow Jones is US suffered 9.99% drop yesterday, the worst drop after 1987 “Black Monday” market crash, which resulted in Asian markets such as Japan, South Korea and Hong Kong opening with heavy losses.
Image Source: News BTC
The worse may not be over soon according to veteran trader Peter Brandt, notably known for making accurate prediction of market crash from the all-time high. Replying to a tweet, sub $1,000 is his prediction based on his unprejudiced view of the chart (https://cointelegraph.com/news/bitcoin-under-1k-is-possible-warns-veteran-trader-peter-brandt). Peter Brandt usually makes more bullish prediction and at the moment, his sub $1,000 prediction might not happen anytime soon as Bitcoin price bounced back to $5,200 level (https://cointelegraph.com/news/bitcoin-price-drops-to-3-637-rebounds-above-5-200-within-minutes.
The latest price drop shows that even the crypto market isn’t immune to the effects of coronavirus. However, there’s always some opportunities to profit as prices of most cryptocurrencies rallied briefly after the huge drop. Don’t miss out on these opportunities, start trading now at https://blog.vhcex.com/home/