Bitcoin once again proved why it has the image of the most volatile cryptocurrency as the price dropped from above $7,000 to as low as $3,700 before making a quick recovery to above $5,000. The fall in the price of bitcoin coincided with the fall in the global financial markets.
What triggered the bitcoin price to fall nearly 50% in one day?
Bitcoin witnessed a bloodbath yesterday as the price slumped down to yearly lows catching bitcoin traders off guard. The slump in the price of bitcoin has coincided with the fall in the stock markets all over the world triggered by the coronavirus outbreak. The coronavirus outbreak has hit hard stock markets all around the world. US President Donald Trump also announced a travel ban from Europe for a month in order to contain the outbreak.
Here is what analysts think about bitcoin’s future after bloody Thursday
Bitcoin trend analyst PenarthUdi on Tradingview opined that bitcoin would never see such low numbers again. He further explained that the leading cryptocurrency is in the midst of the 200-week simple moving average, which is a level that has always held throughout the asset’s history. His chart showed BTC is set up for a rally to $9,000 by June. Earlier, the CEO of BitMEX Arthur Hayes predicted that bitcoin would reach $20,000 by the end of this year.