Bitcoin and cryptocurrency prices went into meltdown over the weekend, with almost $30 billion wiped from crypto markets.
The bitcoin price lost a staggering 18% over the last two days, dragging the wider cryptocurrency market down and causing double-digit percentage losses for the likes of ethereum, Ripple’s XRP, bitcoin cash, and litecoin.
The bitcoin price has almost given up its 2020 gains.
That cause for the sudden sell-off wasn’t immediately clear though some have pointed to the wider stock market and commodity turmoil in the face of the spreading coronavirus.
On Sunday evening, bitcoin was seen trading as low as $7,684 per bitcoin on the Luxembourg-based Bitstamp exchange.
On Saturday, bitcoin had looked poised for a rally, climbing as high as $9,192 before beginning it’s steady plunge.
The bitcoin price had looked on the verge of a recovery before going into meltdown over the weekend. … [+]
The latest fall in the bitcoin price will all but destroy any remaining expectations that bitcoin could have begun acting as a so-called safe-haven asset, which are expected to move higher in times of greater risk and uncertainty.
Some bitcoin and cryptocurrency watchers tried to downplay the crypto market meltdown, urging bitcoin investors to take a long-term view.
“For those who have long term investment horizons, bitcoin is absolutely a buy during these dips,” Jehan Chu, co-founder of blockchain startup investor Kenetic Capital, told CNBC.
“We can expect more of this volatility sparked by macro health and financial shocks, but ultimately long term investments in the digital future and it’s key asset Bitcoin will be a winning strategy.”