Bitcoin Crumbles Under $4K Building Uncertainty in the Crypto Space
On March 12, 2020, many crypto exchanges saw the BTC crash to a daily low at around $3,800, after which it rapidly recovered to above the $4K level.
The last time BTC prices plummeted to below $4K was in mid-2019, so this time the cryptocurrency fell to its lowest level in over a year.
The Crypto Space’s Unknown Fate
Some of the famous names in the crypto-universe are sharing their opinions over the recent poor run.
Tyler Winklevoss, co-founder and CEO of Gemini, says that Bitcoin has taken a lot of hits on the way yet it still stands. He believes that it will make a strong comeback from the current meltdown and its return will be 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 hit never seen before highs on March 13, almost standing on the $69 billion mark.
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 Diversification Tool
The Bitcoin crash of recent days suggests a correlation between the crypto and other traditional stock markets, an opinion that is still very debatable. Nevertheless, BTC still remains a useful diversification tool.
Perhaps the light at the end of the tunnel for BTC investors is that the price has shown some signs of recovery. The crypto is 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.