Financial markets are sinking, and the price of Bitcoin seems to be following the same trend. In a couple of hours, more than US $ 21,000 million have been erased in the cryptocurrency market.
Mass sales in the cryptocurrency market occur after Brent crude futures, an international benchmark in the oil market, fell 28.3% to $ 32.43 per barrel, its lowest level since February 2016. That was caused by Saudi Arabia, which reduced its official oil sales prices, after OPEC failed to reach an agreement on production cuts.
As if that were not enough, Asian markets are sinking categorically, Japan’s Nikkei 225 is sinking just over 6%, while China’s main stock market yields 2.5%.
Not even gold is saved, which in the last 3 hours has lost $ 35, up to US $ 1,665. Where is the money lost in the markets flowing? Hard to know right now.
Where is the price of Bitcoin going?
Between the fierce advance of the Coronavirus and the nervousness of traditional financial markets, Bitcoin seems to be dizzy, immersed in high volatility.
“For those who have long-term investment horizons, Bitcoin is a good buying opportunity during these declines,” Jehan Chu, co-founder of Kenetic Capital, told CNBC.
In the graph below you can clearly see how Bitcoin has lost 1000 dollars in less than 24 hours.
In the short term there is no definite trend in the price of Bitcoin and everything can happen. The next serious support is located in the 7k, which in case of losing it can lead to mass sales.
Coronavirus is wreaking havoc in the markets, where billions of dollars evaporate daily. The virus is out of control, as are stock exchanges, oil and even foreign exchange.
If you are a long-term investor it is a good opportunity to hold Bitcoin, since sooner rather than later it will once again be an active refuge of excellence. You have to have a little patience while the markets calm down.