Bitcoin Crashes Below $4k To 1-Year Low: What’s Next For The Crypto Space?
- The March 12th Bitcoin crash turned into one of the worst days for the crypto space
- We examine what top crypto analysts are saying about the future of Bitcoin and the overall health of the crypto space
- Despite the devastating crash, BTC continues to be a vital diversification tool for investors worldwide
On March 12, 2020, many crypto exchanges saw BTC crash to a daily low at around $3,800, after which it rapidly recovered to above the $4K level.
On Coinbase exchange, the number one cryptocurrency in the world dropped to a daily low at $3,858, while on Bitfinex, it stopped at $4,001.
The last time BTC prices plummeted to below $4K was in mid-2019, so the crypto succumbed to its lowest level in over a year.
What’s Next for the Crypto Space?
Some of the biggest figures in the crypto industry are sharing their thoughts over the recent meltdown.
Tyler Winklevoss, co-founder, and CEO of cryptocurrency exchange Gemini says that Bitcoin has taken a lot of punches and is still standing. He believes that it will emerge from this current calamity stronger than ever.
Galaxy Digital chief executive Michael Novogratz suggests the entire cryptocurrency market is based on confidence, and it seems global confidence in traditional stocks, as well as gold and crypto, has vanished.
Just a few hours after the March 12 crash, BitMEX CEO Arthur Hayes said that he didn’t believe that Bitcoin would revisit the $3,000 territory and that the “max pain probably resides somewhere ranging from $6K – $7K.”
At first, many in the crypto space didn’t take his comments seriously, but his prediction has proven eerily true as bears have been too strong.
In fact, Bitcoin’s daily trading volume surged to new historic highs on March 13, almost touching $69 billion.
Nevertheless, crypto enthusiasts haven’t lost hope. Many Bitcoiners such as Erik Voorhees expect the market to return to growth.
BTC Still Serves As A Useful Diversification Tool
Perhaps the most hopeful sign for BTC investors is that the price has shown some signs of recovery, with the crypto currently trading at $4,979 at press time.
Had it continued to drop, it would have been of much greater concern for crypto lovers as it would have suggested the cyber party was likely coming to an end.
Featured image courtesy of Shutterstock. Source: Cryptopress.