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.
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.
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