Apr 19, 2020 17:15 UTC
| Updated:
Apr 19, 2020 at 17:15 UTC
Due to the widespread coronavirus pandemic the global economy and cryptocurrency market is witnessing a negative impact.The prominent digital assets projected a major fall to break multiple-year-old support points, with the spread over effect on the rest of the altcoins.
At present, Bitcoin was trading at $10,353 on 13 February 2020, which was its year-to-date high. Moreover, the fear emanated from the global spread of COVID-19 pandemic forcing Bitcoin popular countries such as South Korea, UK, Germany, the United states and others to slow down the spread as this caused the Bitcoin price to drop over $4000 in March 2020.
This is unable to challenge that the value of the digital asset has dropped down the price point on several situations in the recent market. Moreover, the pandemic let Bitcoin fall by more than 50% in price in a single day.
Max Keiser predicted that the COVID-19 virus will settle the Bitcoin price to $100,000. Unfortunately, the lockdown policy imposed by various governments has forced Bitcoin holders to sell off their assets for cast to purchase the needed foodstuffs to stay home comfortably.
Due to the reduction in demand the price is currently bouncing back as Bitcoin is trading around $7,237, which was caused by the market synergy of demand and supply. The recent drop in price resulting in the reduction in demand made the asset very cheap for investors to re-enter the market. In the month of February, digital assets were projecting the highest figure of $283 before the full impact of COVID-19.
On 18th March 2020, Ehtereum had crashed by 61%. Ethereum had promised to start the year on a positive note as its top holders were accumulating their assets for a long-term investment. Though Ethereum is still showing some positive signals of bouncing back, its current price is still far below to its February high.
Understanding the fact that the cryptocurrency market will surely bounce back as Bitcoin, for instance, recently broke a resistance point to enter the $7,000 price zone, and its gathering momentum to possibly break $8,000.