Bitcoin seemed to gain positive momentum on Sunday after the Federal Reserve announced to drop interest rates to zero, but the price of bitcoin dropped to low $5,000 within hours. At the time of writing, bitcoin is changing hands at just below $4,800, 7.4% down in the last 24 hours. If you are a serious crypto trader or crypto enthusiast, then platforms like Cryptopanic can help you keep updated with the crypto industry efficiently.
BTC fails to recover even after the Fed’s rate cut.
The price of the leading cryptocurrency surged to $5,900 after the Federal Reserve announced to drop interest rates to nearly zero, but within hours the price dropped to $5000. Bitcoin went as low as $3,800 on 12th March before making a quick recovery to above $5,000. On Sunday, the US Federal Reserve announced measures to protect the economy from the impact of the coronavirus outbreak. The last time such measures were taken during the 2008 financial crisis. The Bank of Korea also announced to slash interest rate to a record low of 0.75% to revive the economy.
How long will it take bitcoin to recover?
According to analysts, it might take some time for bitcoin to rally up and recover to its previous highs. Currently, the financial markets all over the world are down due to the novel coronavirus outbreak. As we witnessed last week, the leading cryptocurrency is yet to establish itself as a safe haven. Several, including online privacy advocate, Edward Snowden said that this fall in bitcoin indicated too much panic and very little reasoning.