Global stock markets were dragged down by novel coronavirus pneumonia (COVID-19), triggering a market downfall and the cryptocurrency market was also affected. Bitcoin plummeted by more than 20% and once fell below the $6,000 mark. As for other cryptocurrencies within the top ten market capitalizations, almost all has fallen by 20% to 30%, and there has been a large-scale selling wave.
According to CoinMarketCap data, Bitcoin has fallen to $5,959.67 in the past 24 hours, which is nearly 25% lower than the period high of $7,964.44. As of 9 AM PST, Bitcoin has fallen by almost 22% to $ 6175.59. Ethereum fell 30% to $ 142.55, and funds also temporarily flowed into the stable currency Tether as a hedge, which remained at the level of $1, and the transaction volume in the past 24 hours also increased to $63.14 billion altogether.
The global stock market has recently been affected by the epidemic, and the European and American stock markets have fallen successively. Although the cryptocurrency market has not seen a deep decline in early March, for example, Bitcoin stood firmly above $9,000 at that time. However, as investors began to sell assets, bitcoin has also fallen sharply in recent days. Based on today’s low, it has fallen more than 43% from the high of $10,457.63 in the past 30 days, and the year-to-date increase has disappeared.
Michael Novogratz, CEO of cryptocurrency asset management company Galaxy Digital, mentioned that when the overall market such as the stock market, bond market, etc. is in a down cycle, investors in the cryptocurrency market will naturally reduce leverage as soon as possible, and compensate others by cashing in cryptocurrency losses in the market. Due to the high investment risk in the cryptocurrency market, when investors’ risk appetite is reduced, the relevant assets will be used for cash.