Bitcoin Price Falls Below $5,000 As US Stock Futures Drops: ‘This is What Capitulation Looks Like”
The other day was pretty dark for the crypto markets with BTC falling in price more than 20% in a couple of hours as the US stock hit their 5% downward limit, and this triggered a temporary halt in trading.
After that, the fall in price continued, and at one point, Bitcoin was trading around $4,700.
At the moment of writing this article, Bitcoin is trying really hard to recover, and it’s now still trading in the red, but it’s priced at $5,468.11.
A couple of days ago, The World Health Organization declared the novel coronavirus, a pandemic, and President Donald Trump addressed the nation from the Oval Office. He cut ties between Europe and the US regarding tourism and almost all of Europe is banned from flying to the US.
Trump believes that Europe did not take enough precautionary spreading measures to contain the virus, and that’s why it’s spreading so brutally.
Overseas equities, oil, bitcoin, and Treasury yields plunged Thursday,
According to Business Insider, “The biggest source of disappointment on Wall Street was the lack of specific ways to support people and small- and medium-sized enterprises,” Jasper Lawler, the head of research at London Capital Group, said in a morning note.”
“Paid sick leave, free testing, and a solution for uninsured Americans were all missing,” he added.
In order to learn more details, head over to the original article.
Alex Kruger was right
CryptoDaily notes that crypto analyst Alex Kruger said that the declaration of a pandemic is the equivalent of WHO calling it a bear market.
He also said that the official recognition of coronavirus being a pandemic means calling the crypto space a bear market.
This is similar to WHO finally calling it a bear market. https://t.co/pLoQ6FU0W7
— Alex Krüger (@krugermacro) March 11, 2020
Analysts believe that BTC will fall even lower.
DonAlt believes the market may take a while to recover, according to the Daily Hodl:
“This is what capitulation looks like. That said, capitulation can go much lower than you’d expect it to. I’m gonna give it some time to develop, not in the mood to go catch bloody knives.”
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.