The economic damage caused by the coronavirus brings the Bitcoin tank to the $6K mark

Although there have been historical declines in stock markets around the world, the situation in the cryptocurrency world is not that different, which can explain why Bitcoin has been falling recently. On Thursday, the world’s largest cryptocurrency by market capitalization plummeted at an alarming rate.

Panic sales

The coronavirus pandemic has had a turbulent impact on the world economy. As people’s worries about damage eventually became entrenched, the global market suffered a massive sell-off. BTC is in trouble 25% on Thursday morning As investors continue to sell it. Although it did make up for some losses, BTC still fell 22% and traded at $6,218.

The BTC loss recorded today is the largest one-day loss in five years, and it remains to be seen whether this sell-off will continue in the coming days. At present, the coronavirus has not yet ended, and the market is likely to fall into turmoil for a long time.However, it is also important to point out The crash is not only limited To BTC; it has hit all kinds of cryptocurrencies.

>> Ethereum fell to $200 due to the collapse of cryptocurrencies and global markets

In the past five days, BTC has lost 30%, which has actually exceeded the losses recorded by other asset classes such as stocks and oil. The portfolio manager of the cryptocurrency company NKB said that currently, a lot of “risk reduction” is being done across asset classes, and BTC is not immune to this particular phenomenon.

Due to the current situation brought about by the coronavirus, investors are quickly moving away from risky assets, and it is believed that this move has greatly affected the price of Bitcoin. How long will it take for the situation to improve.

Featured image: DepositPhotos©EdZbarzhyvetsky

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