Bitcoin fell considerably as most traders recommended a sell-off across the global market, attributed to the coronavirus pandemic affecting many countries.
Reportedly, during the morning trade on Thursday, the cryptocurrency experienced its biggest fall by as low as 24%. Earlier it was down by 18% i.e. US$6,500, recording its biggest daily loss in the last five years.
Apparently, in the last five years, Bitcoin has lost close to 30% of its value, outpacing severe losses for assets from the stocks to oil as the virus concern takes over the world.
Following the recent news where the President of the United States of America, Donald Trump barred travel from Europe due to rising cases of coronavirus in the country, the global stocks slipped into a bear market and oil prices dropped considerably.
Seemingly, the crash has raised serious questions regarding the practicality of bitcoin as a currency among notable economists. Bitcoin is extremely prone to frequently fluctuating price swings and has failed to pose as a reliable means of payment.
Citing reports, in the first six weeks of 2020, BTC= BTSP has witnessed nearly half times the growth since the investors showed confidence in a blend of arcane tech factors in its code and the widespread acceptance of cryptocurrency were inclining towards repricing.
For the record, the Coronavirus pandemic has severely affected stock markets across the globe. Japan’s benchmark – Nikkei 225 depicted a fall by 8.5%, China’s Shanghai Composite lost over 3.3% and the Hang Seng in Hong Kong witnessed a slip by 5.8%.
According to reliable sources, stock trading in India’s Nifty 50 stock index was paused for 45 minutes after experiencing a 10% downfall and hitting a “circuit-breaker”.
European exchange, on the other hand, observed a major fall with London’s FTSE 100 closed at a low of 9.8%, France’s CAC finished down at 12.3% and Germany’s DAX shed 12.2%. The benchmark index of Italy finished approximately 17% lower.