Cryptos are plunging along with global risk assets like BTC and other coins drop by more than 10 percent over the last 24-hour session. Bitcoin dropped by almost 14 percent at one point of time since yesterday’s high levels as the current fall clearly demonstrates the fact that cryptos are not immune to the current convolution in the global markets.
Crypto market has lost around $21 billion in total market cap during this weekend. As coronavirus fear rattled the global market, the overall crypto market has fallen apart. Among the list of Cryptocurrencies, BTC/USD dropped 22.94 percent, ETH/USD dropped 3.03 percent, XPR/USD dropped 1.54 percent and LTC/USD dropped 5.97 percent.
Yury Safronau, chief technical analyst at AtoZ Markets, said: “As per short-term overview, the impact of the global economy is very indecisive but bitcoin is currently trading like a risk on asset. Despite having a negative correlation earlier, the crypto market may continue to fall in tandem with the stock market and other leading assets apart from Gold.”
Safronau opines, as per long-term perspective, current global economic breakdown may not going sustain so long. The major driver of current economic crisis is the Coronavirus. While gold managed to sustain momentum, Bitcoin and other cryptos failed to get a piece of it. The long-term bullish bias is still in the market which may help price to climb higher in the near future but a definite floor around the corner is still missing for the crypto market currently.
Vijay Valecha, chief investment officer at Century Financial, said: “Downfall in bitcoin is something markets are extremely concerned about. The fall of the entire universe of risk assets has traditionally always bought some demand for crypto buying. Further fall in cryptos along with risk markets is likely to completely negate its image as a safe haven during times of turmoil. Crypto market cap has declined by $ 25 billion since last week’s high with BTC dominance…