The emergence of the coronavirus pandemic has had a negative impact on the global economy and the cryptocurrency market.
The leading digital assets took a significant fall to break multiple-year-old support points, having a spread over effect on the rest of the altcoins as it is said that “a falling tide lowers all boats”.
Bitcoin was trading at $10,353 on 13 February 2020, which was its year-to-date high. However, the fear emanated from the global spread of the pandemic forcing Bitcoin popular countries like Germany, the US, South Korea, UK, and others to take measures to slow down the spread and this caused the Bitcoin price to fall to around $4000 in March 2020.
It is indisputable that the value of the digital asset has fallen below that price point on multiple occasions in the recent market pullbacks. However, the pandemic forced Bitcoin to fall by more than 50% in price in a single day.Â
Max Keiser, a very respectable figure in the Bitcoin industry earlier predicted that the coronavirus will send the Bitcoin price to $100,000. Unfortunately, this isn’t the case (yet). The lockdown policy imposed by various governments has forced Bitcoin holders to sell off their assets for cash to purchase the needed foodstuffs to stay home comfortably.
The sharp decrease in demand caused the price to plunge. The price is currently bouncing back as Bitcoin is trading around $7,237, which was caused by the market synergy of demand and supply. The earlier fall in price due to the decrease in demand made the asset very cheap for investors to re-enter the market.
Ethereum was another most hit cryptocurrency. The digital asset was doing well in the month of February, enjoying its monthly high of $283 before the full impact of the pandemic was noticed.
As of 18 March 2020, Ethereum had crashed in value by 61%. Ethereum was said to have started the year on a positive note as its top holders were accumulating their assets for a long-term investment until they decided to dump their assets amidst the pandemic fear, inherently sending the price crashing.Â
Though Ethereum is showing some signs of bouncing back, its current price is still far below its February high, signifying the extent of hit suffered from the impact of the pandemic.
It is important to understand that the cryptocurrency market will surely bounce back as Bitcoin, for instance, recently broke a resistance point to enter the $7,000 price zone, and its gathering momentum to possible break $8,000.
