UPDATE: 12:54 PM IST [GMT+5:30]
Bitcoin prices are now starting to reflect further global market turmoil. BTC has tumbled by another 30 percentage points to reach a new low of $5000 at the time of writing. Global markets continue to tank as well. While Asian markets such as those in India hit lower circuits to prompt a trading halt, markets in the US and Japan declined further forcing yet another circuit breaker in a span of just one week.
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Popular cryptocurrency Bitcoin plunged a fortune on Thursday, crashing almost 25% in one hour below $6000, as markets pan-industry continue to witness massive sell-offs. The largest cryptocurrency by value traded as low as $5705.31 before stabilizing at around $6550.
“Investors are moving out of any risky assets,” said Vijay Ayyar, Singapore-based head of business development at crypto exchange Luno. “Even though Bitcoin is compared to gold as a safe-haven asset, it’s very under-penetrated and is considered more as a risky asset to hold at this point,” Bloomberg reported.
Other cryptocurrencies reported even steeper falls as they move in tandem with the traditional markets with panic over the measures adopted by the US government for the coronavirus outbreak. The crash falls in-line with the latest trends as stock markets throughout the world register losses. The condition has worsened after Donald Trump announced a 30-day ban on travel from Europe.
With the coronavirus showing no signs of slowing down, the stocks may continue to plunge along with the cryptocurrencies. The stock markets across the US continued to tumble on Thursday morning as well, falling by more than 7% in early trade after Trump’s announcement. The plunge triggered a level 1 market-wide Circuit Breaker trading halt, although the equity markets resumed trading soon after. The times ahead look ominous as economies around the world continue to tumble amid the pandemic.
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