A hard bitcoin crash due to coronavirus pandemic led to $100 million cryptocurrency market wipeout. Within a 24-hour period, BTC lost 60% of its trading value.
The first crypto asset was trading at more $9k before coronavirus started spreading throughout the United States. However, the panick due the pandemic turned the stock market and crypto market upside down.
Bitcoin crashed 60% in a matter of hours. The stock market witnessed its worst trading day since 1987. That was on Friday, March 13, 2020. BTC was trading for as low as $3,600 on some cryptocurrency exchanges.
Cryptocurrrencies and stocks began free falling after cities, states in the U.S. and more countries started reporting overwhelming Coronavirus (COVID-19) cases.
Bitcoin / cryptocurrency analyst predicted the crash
Andreas Antonopoulos, a famed bitcoin & crypto expert explained two months ago (January 1, 2020) why a bitcoin crash is emminent and why:
“What most people don’t realize I think is that, in the beginning at least, crypto will crash hard.”
Mr. Antonopoulos continued:
“And the reason it will crash hard is because a lot of the venture capital, corporate investments and private investment from individuals that is based on cheap money and disposable income and excess cash in portfolios etc., like in any other part of the economy, will dry up.”
While a number of “experts” scramble to explain the current crypto & bitcoin crash, Antonopoulos, for months tried to warn investors.
“When people get scared, when there is a recession like that, they pull back their investments, and they’re going to pull back from crypto too.”
Crypto Twitter debates & tries to cope with market onslaught
Some crypto analysts, traders and enthusiasts have taken to Twitter to ease each others’ pain with humor, while others tried to explain the sudden bitcoin crash.
— Squeeze (@cryptoSqueeze) March 14, 2020
Moreover, a few users looked at Bitcoin’s future outlook, suggesting BTC could have a hard time finding investors.
Looking at this piece of shit monthly, I don’t really feel like buying the bottom at all, even if the price is at $3000, $1500
This savage dump violated a consensus that was built over a 8 year period
It might take another 8 years to rebuild confidence in BTC pic.twitter.com/LMqIpswjn0
— ๑ RAMEN ๑ (@NoodleofBinance) March 14, 2020
Others suggested cash is still king
A big part of $BTC selling off is due to a panacked marketplace where traders are looking to get into cash
That same cash isn’t going to be flowing back into Bitcoin anytime soon
So unless stocks rally, or you convince your entire town to buy Bitcoin
Don’t expect a rally soon
— Josh Rager 📈 (@Josh_Rager) March 14, 2020
Experience crypto analyst such as PlanB took a more analytic approach
Some people think S2F model broke yesterday. Of course it did not. #bitcoin oscillated nicely around model value and stayed well within model bands. The extreme volatility within the model bands shakes out the weak hands. No extreme returns without extreme risk (volatility). pic.twitter.com/6UB3hO3ZE7
— PlanB (@100trillionUSD) March 13, 2020
Andreas indicated this crypto & bitcoin crash is part of growing up
You wanted “institutional investors” and “mainstream adoption”?
This is what it looks like: Absent the principles of decentralization, traded as a high-volatility asset to add “spice” to a portfolio.
As soon as price gets uncomfortable, they drop it like a hot potato. We don’t.
— Andreas ☮ 🌈 ⚛ ⚖ 🌐 📡 📖 📹 🔑 🛩 (@aantonop) March 13, 2020
Nothing to do with negative feelings about the halving? $7k break even profit level now is $14k in a couple of months. That’s going to be hell for the miners. Possibly more than 50% forced onto the sidelines. More centralisation etc etc.
— One Block More (@one_block_more) March 13, 2020
Just about a week ago, Bitcoin (BTC) was in the verge of breaking $10,000 per coin. It has since recovered gained a little momentum, currently trading at $5,287. However, BTC and the entire cryptocurrency market remains volatile and may behave that way until this disease is contained.
Mathieu is a Information technology professional with over 15 years of experience. He started one of the first bitcoin blogs existed in 2010. He started writing about, investing in bitcoin and promoting the first cryptocurrency when only a few technological savvy people knew about it. Mathieu is a world traveler who enjoys culture, technology, finance, salmon, rice and beans. He’s cool, collected and knows a great deal about blockchain technology.