Topic: Why Bitcoin price Crashed Admist Coronavirus Outbreak. (Read 143 times)
Most people thought that btc and crypto market will pump when coronavirus will spread further but i think they miscalculated the situation because in the state of fear, panic and uncertainty every financial market will dump, in the end all are human being and it is common human behavior that was not predicted rightly by most of the market experts. But i think with control we will see market back and booming.
Had it been Bitcoin has got to a stage where it could be used to buy anything in any store, we will not experience what is happening now.
People need cash- Yes, that is true? They could have just sold part of their assets from crypto to fiat and leave the rest as crypto investment, but since a lot of people want t also sell and the price is plunging, which has caused panic and results in an urge to sell all.
Also, these people read the news almost every time. In a case where they read that there are no certainties yet on it, this causes more panic sell.
People need cash- Yes, that is true? They could have just sold part of their assets from crypto to fiat and leave the rest as crypto investment, but since a lot of people want t also sell and the price is plunging, which has caused panic and results in an urge to sell all.
Also, these people read the news almost every time. In a case where they read that there are no certainties yet on it, this causes more panic sell.
Obviously people cashed out due to panic and fear from corona virus and they wanted to keep cash in hand to use if they or anyone in their family suffers from this viral infection and then again i think positive news coming from China regarding the control of virus spread the positivity back and marked recovered somewhat. Second largest effected country Italy is also taking now extreme steps and they are also encouraging use of crypto for payments rather than cash as a precaution where paper money can also be a medium to spread virus. I think all these steps will bring positive results in about 2 weeks time.
We can't say all the liquidated money has been or going to be used for our important needs because people are not going to spend millions on toilet papers so this is clear that investors got panic and sold most of their crypto holdings while others see this as biggest opportunity and started buying it that is why prices started to increase.
Against all odds, it was unexpected by majority to see bitcoin price dip down admist the coronavirus break out. so far, the most brought up reason for the crash in price has been associated with human need to switch to stable liquid assest. The coronavirus outbreak coupled up with the panic buying as a result of no knowledge of how long the outbreak will last for and also the need to survive while isolation is still at its peak caused majority of
people to sell off their btc, the dump was really high. Majority of people invested in btc for the long term benefeits of it, but in a situation where the essential need of humans such as housing, foods, hand sanitizer and of course toilet papers, Investing no longer become a priority.
As of writing, you can’t buy toilet paper or food with Bitcoin(this might change in the future). Only with cash.
At the moment, we can all smile again gradually, as the prices are beginning to rise again.
people to sell off their btc, the dump was really high. Majority of people invested in btc for the long term benefeits of it, but in a situation where the essential need of humans such as housing, foods, hand sanitizer and of course toilet papers, Investing no longer become a priority.
As of writing, you can’t buy toilet paper or food with Bitcoin(this might change in the future). Only with cash.
At the moment, we can all smile again gradually, as the prices are beginning to rise again.
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