The price of cryptocurrency Bitcoin tumbled drastically, losing 20 percent of its value within an hour. The value of Bitcoin came below 600 dollars, the lowest since 2019 because of the cryptocurrency crash.
Many other cryptocurrencies were also affected with significant losses and Bitcoin losing one-third of its value. Ethereum is down 27% in 4 days, making it the worst-hit cryptocurrency.
Several experts and cryptocurrency analysts are blaming the Covid-19 coronavirus outbreak for the crash and plumbing of the global economy. "Bitcoin has fallen as cryptocurrencies become caught up in the turmoil we're seeing in traditional markets," Simon Peters, a market analyst at online trading platform eToro, reports The Independent.
"Previously seen as a possible safe haven in difficult times, investors now seem to be selling out to take back liquidity in case the coronavirus spreads even further. In a time of uncertainty, many investors might feel it is better to own cash or gold rather than more speculative cryptocurrencies like bitcoin."
The virus declared as a pandemic by the World Health Organization on Wednesday has made the global economy standstill with continuous losses and falling stocks.
The Independent reports, "One economic forecaster, who predicted the 2008 global financial crash, warned that another crash is on the way. Jesse Colombo described coronavirus as “the one-two punch” that will send the economy “hurtling towards recession”."
Experts say that the cryptocurrency prices will keep falling down further, an unfortunate turn to those who were relying on the cryptocurrency for market flow in difficult times.
This drop means that around 50 billion dollars have been lost from Bitcoin's whole value. It is the most drastic and severe crash since Bitcoin's inception.
Though the cryptocurrency market is always volatile, researchers say that it's not the end. They are comparing the crash with 2017, when Bitcoin value shrewd by 20,000 dollars and it recovered. They say that the price and economic graphs are very similar and thus the cryptocurrency will make a comeback.
And famous whistleblower Edward Snowden backs the claim tweeting, "This is the first time in a while I've felt like buying bitcoin. That drop was too much panic and too little reason."