Bitcoin is going through a remarkably bad day. It turns out all assets are having a rough month — including cryptocurrencies. A couple of hours ago, the average price of BTC dropped by 15% in just 20 minutes.
On CoinGecko, 1 BTC was worth around $7,250 across different exchanges at 10:30 AM GMT. At 10:50 AM GMT, the price dropped to $6,160 for 1 BTC. Bitcoin hasn’t recovered since then as 1 BTC can now be exchanged for $6,150.
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This isn’t just an accident. Bitcoin has been steadily going down for the past month. On February 19, you could still receive over $10,000 by selling 1 BTC.
Yesterday, the World Health Organization officially declared the spread of COVID-19 a pandemic. The U.S. has taken additional measures to combat the spread of the coronavirus, including travel restrictions from Europe to the U.S. Asian and European stock markets have had a rough trading day following the news.
Many believed that cryptocurrencies would be inversely correlated to stock markets. But economic confidence is also hurting cryptocurrencies. Uncertainty has led to today’s crypto asset selloff. You don’t want to keep trading positions in risky assets when it’s unclear whether the economy can recover from the coronavirus.
Other popular cryptocurrencies, such as Ethereum, XRP and Bitcoin Cash are respectively down 28.3%, 23.2% and 31.1% over the past 24 hours. In other words, everything is red right now.