Bitcoin experienced its worst sell-off in 7 years as investors seek a flight to safety.
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What just happened?
"Volatility" is probably an understatement for the current conditions. Following the general markets, most cryptocurrency assets took a dive today, challenging their heretofore assumed status as safe havens and bringing a host of questions of what happens next. CoinDesk is here to guide you through it.
Coronavirus fears are absolutely killing the market. News about infections, event cancellations and a U.S. travel ban from Europe are devastating markets everywhere, including cryptocurrencies.
Bitcoin experienced its worst sell-off in seven years as investors seek a flight to safety. Cryptocurrencies across the board are taking a beating as traditional markets continue to get hammered.
Government bonds are really the only thing trending up, as 30-year U.S. Treasurys are in the green, a safe haven along with cash at this very moment.
"In a panic as severe as this one, investors are racing to safety in the form of cash," noted Alex Mashinsky, CEO of cryptocurrency lender Celsius Network.
BitMEX Exacerbates Fall
The largest cryptocurrency derivatives exchange, Seychelles-based BitMEX, saw substantial liquidations Thursday, to the tune of $700 million — its most in 16 months.
Ethereum's Largest-Ever Drop
Ether suffered a 33 percent drop, a bloodbath never before seen for the second-leading cryptocurrency by market capitalization. Continued selling could cause the DeFi market serious pain.
MakerDAO Weighs Emergency Shutdown
If a shutdown were to occur, the crypto market would be flooded with some 2.4 million ETH even as the asset’s value plummets amid broader market turmoil.
Cash Is King
A survey from iTrustCapital, a retirement investment firm, shows sentiment towards cash is growing as gold tanks. "Cash in a mattress" has become the preferred choice.
Fed Injecting $1.5 Trillion
The New York Fed Thursday announced $500 billion of three-month repo loans. Friday, the bank will offer additional $500 billion of three-month loans and $500 billion of one-month loans.
Rational Reasoning for HODLers
A drop from around $8,000 yesterday to under $6,000 today is a head-spinning dump. However, long-term cryptocurrency advocates know volatility is nothing new.
LISTEN: What Central Banks Are Doing
Adam Levine and John Biggs talk about the downward trend in markets, what central banks are doing to contain economic problems and the oscillation of risk-on and risk-off assets.
Tweet of the Day
Michael Arrington is CEO of Arrington XRP Capital, a cryptocurrency fund that marks its investments in XRP, the third largest cryptocurrency and along with other assets is a total dumpster fire. |
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BTC: Price: $6,014 (Coinbase) | Market cap: $171 billion (CoinGecko)| 24-Hr Volume: $107 billion (CoinGecko)
Trend: With coronavirus showing no signs of a slowdown, stocks may continue to lose altitude, possibly keeping bitcoin under pressure.
Other crypto assets are getting pummeled as well.
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| | | | Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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