Bitcoin(BTC) has closed the previous week with a shocking $8,024 which means a nearly 9.92% loss. This is the lowest the coin has faced since January 13 when it was traded for $7,946. With the ongoing events, investors fear that it may further face a rapid fall down. A sudden fear has broken out in the economic market due to the ongoing coronavirus threat and its impact is clearly visible on BTC and other altcoins.
COVID-19 and its impact on the global economy
Coronavirus has left an impact all over the globe. This in particular has weakened the demand for crude oil from Saudi Arabia and due to a disagreement between Saudi Arabia and Russia, OPEC members are keen to decrease crude oil production because of the decline of demand. But as per the reports, Saudi Arabia is still likely to increase the production of crude oil and that may lead to a price war among the competitors.
Likewise, it has impacted the Dow futures, dropping more than 1,200 points(4.6%). S&P 500 futures fell by 4.89% and Brent Crude fell by 30%. Clearly, Bitcoin cost has not been saved, the savagery caused upon value markets and at the hour of distributing the advanced resource is plunging beneath $8,000 to stamp a new low at $7,675. Coronavirus has taken its toll on Italy and France as well.
The respective governments are forced to shut down schools, sports activities, public gatherings, and vice versa. Italy has severely been hit by the COVID-19 resulting in hundreds of people’s death and many more affected. Comparatively the ratio is less in France.
The above data clearly indicates the fear of a coronavirus outbreak in the market, such kind of low or fear among the masses has not been there since last December. This virus has clearly left its impact on the market.
As of now, Bitcoin (BTC) is trading at $7,818.53 but keeping in mind the market situation and on the going events it may fall below $7,550. This has impacted other altcoins as well including Ethereum witnessing a downfall by 12.46% and XRP falling by 9.97%. The overall cryptocurrency market cap now stands at $224.6 billion, Bitcoin’s dominance rate is 63.5% and 24 Vol stands at $181.1 billion.