The price action witnessed in the bitcoin market over the last few days has been historic. Bitcoin (BTC) slumped to as low as $3,700 yesterday, before rebounding above $5K in a span of minutes.
A similar trend was seen in the traditional markets with the Dow Jones experiencing its worst day since the “Black Monday” crash in 1987.
The only difference between bitcoin and the stock market is that bitcoin will recover unaided. The stock markets, on the other hand, will require the respective governments to intervene and bring calm to the panicky markets that have spiraled down due to the coronavirus. This is according to Dan Tapiero, the co-founder of Gold Bullion International.
The World’s Richest Lost More Than The Entire Crypto Market Cap
Coronavirus has quickly turned to a nightmare as it brings the global economy to a standstill. Over the last few weeks, investors have lost trillions in the stock market rout that has been triggered by coronavirus-driven recession fears.
Bitcoin was not left out. The intense volatility on Thursday led to bitcoin plummeting to lows last seen in early 2019. However, according to Morgan Creek’s Anthony Pompliano, wealthy investors in the stock market lost more than crypto markets entire market capitalization.
The world's 500 richest people collectively lost more than $330 billion in net worth on Thursday from the stock market drop.
— Pomp
That is more value than the entire crypto market cap.
The alternate financial system is just getting started.(@APompliano) March 13, 2020
Pomp concluded that the alternate financial system crypto, in this case, is just warming up.
Bitcoin Is The Only True Free Market: Dan Tapiero
Over the past couple of days, circuit breakers in the stock markets have been triggered due to the brutal sell-offs. This resulted in trading being temporarily suspended for a few minutes in order to eliminate fears that could lead to a death spiral on the markets. For instance, on March 9, circuit breakers were triggered when the S&P 500 fell 7 percent, halting trading on the US stock market for more than 10 minutes. Notably, there are no circuit breakers in the cryptocurrency markets.
Moreover, the Federal Reserve pledged to inject over $1 trillion into the markets over the next few weeks to help keep the markets afloat amid the coronavirus pandemic that President Trump will soon declare a national emergency.
Tapiero noted that unlike the stocks that need a helping hand, bitcoin is fully capable of rebounding on its own because it is undeniably the “only true free market” in the whole wide world.
Tapiero implies that bitcoin’s drop to the $3000 level is not entirely a bad thing as it recovered quickly without the intervention of any entity. Once the dust settles, bitcoin will be “fine”.
More cases of coronavirus globally are to be expected in the near future as Europe now becomes the new epicenter of the virus. As such, BTC is likely to remain below $6,200 for a while. The OG crypto is changing hands at $5,253.71 at the time of publication.
