Bitcoin collapsed to $5678 on March 11 – the last time this cryptographic currency was so cheap was in May last year. The daily drop was 25%. Then the cost went up slightly and was about $6000.
Just a couple of weeks ago, bitcoin was worth about $10,000 per unit. The fall also affected other popular crypto values: Litecoin, Ethereum, XRP, Bitcoin Cash. On average, they fell in price by 25-30% per day. However, there are crypt-currencies whose rate is still holding: for example, Tether and USD Coin.
Simon Peters, an analyst of the eToro platform, thinks that the holders of cryptocurrencies started selling them because of the coronavirus spreading, which may have a strong negative impact on the global economy. The expert believes that due to the growing number of offers to sell bitcoin, the value of the cryptovite has subsided.
Further, Bitcoin continues to show interesting movements on the chart, falling slightly below $4 thousand. However, then it partly recouped the fall, “surfacing” to $5.3-5.4 thousand.
Exchange rate volatility is reflected in the capitalization of cryptovoltaic currencies, which instantly lost over $63bn – following the bitcoin usually change rates and all other virtual money.
Experts consider such volatility of crypto values to be a normal phenomenon and are optimistic about the long-term outlook.
At the moment, crypto values are not going to playback the decline that happened last week, but on the contrary, they are still demonstrating further decline. Bitcoin briefly gained ground at slightly above $5k per unit, but then once again overcame the psychological mark and stayed below it. Currently, according to Coindesk, the rate of Bitcoin is $4.84 thousand per unit and bitcoin to PayPal conversion is still possible.
The decrease looks sharp, as on the eve the rate of Bitcoin went up, almost reaching the level of $6 thousand. Experts associated such behavior of the crypt currency with the decision of American financial regulators to reduce the base rate to almost zero, predicting another “rally” of the rate of virtual money. The Fed’s decision was explained by its fight against risks in Asian markets because of the coronavirus.
The decrease in the rate of Bitcoin and other cryptocurrencies, in turn, puts into question planned upgrades, which were going to be actively engaged owners of large mining farms.
In anticipation of growth
However, the interviewed analysts do not look forward to a continuous decline in prices for crypto. The value of cryptocurrencies may start to gradually recover in a few months, as prices of oil.
According to investors’ estimations, by the May quotes of the cryptocurrency should be at a higher level than now. The rates may recover by 7-15%.
In the future, quotations may show relatively stable dynamics in the absence of new shocks on stock exchanges. Moreover, the launch of new electronic coins – Libra (Libra) and Gram (Gram) may support the cryptomarket.
Crypt currency prices are also allowed to rise over the next few months, as investors may start actively buying digital coins again as coronavirus risks diminish.