At the time of writing, the price of bitcoin is trading at just above the $6,400, 2% up in the last 24 hours. Despite the current bullish narrative, the price of bitcoin is likely to drop to below $5,000 in the coming weeks due to several factors.
Bitcoin witnessed its worst month in two years.
This month proved to be one of the worst months for the leading cryptocurrency since February 2018. The volatility index for bitcoin this month was at six years high as the bitcoin price witnessed massive swings. The leading cryptocurrency witnessed its worst day on 13th March when the price dropped nearly 50% in the space of a few hours and still has not recovered from it.
Dow Jones has lost 21% this quarter.
Dow is up 100 points on the last trading of the quarter, but the US stock markets witnessed one of the worst quarters in a very long time. Dow Jones has lost 21% this quarter, and the S&P 500 is down 18.5%. The main reason for the crash in the financial markets this quarter was the coronavirus outbreak, as several countries are still under the lockdown. Bitcoin is still coupled with the traditional markets, which is the main factor why a massive downside movement is expected in the short term for the price of bitcoin.