- The cryptocurrency market hit by anti-risk sentiments.
- All major altcoins are nursing double-digit losses.
Black Monday on the cryptocurrency market is followed by Black Thursday. Bitcoin (BTC) and all major altcoins smashed several important support levels leaving cryptocurrency traders in dismay. While the bearish market is nothing new as BTC has started collapsing during the past weekend amid the worsened macroeconomic and geopolitical situation.
An oil spat between Russia and Saudi Arabia amid spreading coronavirus caused panic in the financial markets. Investors gripped by fears rushed to safe-haven assets, while Bitcoin and other digital currencies moved in sync with risky assets like stocks.
Vijay Ayyar, Singapore-based head of business development at crypto exchange Luno commented (cited by Bloomberg):
“Investors are moving out of any risky assets. 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.”
At the time of writing, BTC/USD is changing hands at $6,312, down nearly 20% on a day-to-day basis. The coin touched the area below $5,700 before the correction started. Despite the recovery, BTC/USD is still vulnerable to further losses as the panic may intensify once US traders join the game.
ETH/USD recovered to $140.00 after a devastating collapse to $134.50. The second-largest digital asset is down nearly 30% in recent 24 hours; XRP/USD is changing hands at $0.1630 with over 25% of day-to-day losses. All major digital assets are nursing double-digit losses with the most hit altcoin out of top-100 Synthetix Network Token (-43%).
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