The cryptocurrencies market fluctuated strongly during the last few weeks. It seems uncertainty about the coronavirus pandemic influenced cryptos too. Bitcoin dropped down by 18% in previous weeks as the traders took risk-off tactics. Crypto plummeted by 7.5% to $5,026 on Tuesday in New York. According to Bloomberg data, it fell as low as $4,442 before that.
Despite the massive sell-off, Bitcoin’s price has failed to attract investors – stated Naeem Aslam, the chief market analyst at AvaTrade. Bitcoin has declined about 55% from the $10,500 high record set on Feb. 13 this year. According to Aslam, the price is likely to drop even more.
Bitcoin seems ready to retest the recent lows of $4,000. If that level is broken, crypto may drop down to 2018 and early 2019 lows. The analyst considers any price below $3,500 very attractive, as it would be an excellent opportunity to buy Bitcoin until it rises again.
What About Other Cryptos?
Other cryptocurrencies also declined significantly. Ethereum tumbled down by about 12%, while Litecoin lost more than 8% on Monday. The crypto market has started to emulate equities, according to Christel Quek, the chief commercial officer and co-founder at Bolt Global. And the investors are entering the crypto space as they diversify portfolios more frequently.
After such a decline in the crypto assets, some experts say that Bitcoin can’t be a safe-haven currency. Chris Bendiksen, head of research at CoinShares Group, is one of them. He noted that many in the Bitcoin industry had been hailing Bitcoin as a new safe-haven asset. However, it seems clear that proponents of this status have probably gotten a bit ahead of themselves.
WhileBitcoin may gain such status in the future, presently, it continues falling, which goes against the safe-haven currencies’ behavior – argues Bendiksen. However, he thinks that when the sellers run out on the market, prices will stabilize.
- Trading Instrument