By Shelly Melancon (Switzerland)
Amidst rising global concerns for the newly discovered COVID-19 strain, Bitcoin lost $2000 in value today to trade below $55,000. The value of digital assets has continued to grow since the year began and going into the end of the year, several price movements are expected to happen based on news that can impact the market.
Truly, the crypto market responded almost immediately to the news of a new strain of the dreaded virus that was discovered in South Africa. Following the announcement, Bitcoin, the largest-capped coin on the market, lost $2,200. Bitcoin’s crash pulled other big coins on the market to a forced bearish move which saw many of them plunge by nearly 10%.
Before the plunge, Bitcoin was looking to exit weeks of a strong bearish trend by breaking structure through to hit the $60,000 mark. But the impact of the news forced the coin to move farther down than its earlier $58,000 price. As of writing, Bitcoin trades at $54,788.17 having lost 6.03% today on Coinmarketcap.
Investors and traders had cause for panic as Bitcoin futures traders were liquidated. Over $100 million invested in BTC futures were liquidated within minutes of the news. This once again emphasizes the risks associated with crypto futures trading. Across the major crypto exchanges, billions of dollars are traded on BTC futures daily.
Also read:COVID, Digital Assets, Traditional Assets
According to Cointelegraph, over $630 million have now been liquidated across all crypto markets in 24 hours. That amount continues to rise given the strong bearish candle that formed on the BTCUSD hourly chart. Traders have taken to Twitter to discuss the BTC price action. Some called it a beautiful opportunity to “buy the dip”.
This is not the first time that news related to the COVID-19 pandemic has caused a drop in the prices of assets. Earlier in 2020 when the pandemic began, both digital and traditional assets suffered some damage but they eventually recovered. The latest discovery of a new strain has however affected digital assets, traditional bonds, and stock prices across Europe.
Yet, according to Bloomberg, traditional European bonds investors have made a killing; European bonds shot up as others crashed. Other digital tokens such as ETH, LTC, XRP, EOS, etc. have all entered a bearish price movement. Meanwhile, metaverse tokens retained their price actions and have not been affected by the news.
Predictions for End of The Year
In August when Bitcoin began to recover from its May crash, investors were hopeful of a strong bullish movement. On November 10, Bitcoin had broken into a new all-time high price of $68,789.63. Many investors prepared to buy more as they hoped that the coin would hit the much anticipated $100,000 price.
But after several corrections, Bitcoin has not shown that it can sustain the bullish momentum needed to hit that price. The token has corrected several times in the last two weeks and trades below the $59,000 resistance.
Traders will be hoping for any positive news that can push the price beyond its present value.
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