The massive unexpected plummet Bitcoin displayed over the course of yesterday and today is yet to quiver traders even though it struck a dagger in the heart of investors. In just a day, Bitcoin is down by over 10%, dragging most altcoin to a similar dire situation, and the entire crypto market is also down by $26 billion.
This happened after the massive plummet of oil prices and the further sell-off in stocks. Some analysts have even claimed a further plunge could be seen in few days’ time considering the epidemic state of coronavirus and the worsened selloff from the crypto market.
However, traders are of the opinion that the ongoing fall is a general situation in the world market, thus there is no reason to panic as Bitcoin is yet to possess the ability to stand alone without swinging along with a massive general market situation capable of overwhelming oil market.
The cofounder and partner at Morgan Creeks digital, Antonio Pompliano, revealed that oil present situation is far worse than Bitcoin’s. He said the oil market displayed a high level of volatility.
Pompliano added that oil price fell more than Bitcoin’s highest fall ever in a single day. Oil price plunged by 30%, presenting a value of $31.02 per barrel – lowest oil price since February 2016. Japan and Hong Kong Stock’s Markets have also followed the same trend with a sharp fall. These are indications the worst did not happen to Bitcoin.
Someone tell the Bitcoin detractors that oil just dropped more in a single day than Bitcoin ever has.
Too much volatility! 😂🤷🏽♂️
— Pomp 🌪 (@APompliano) March 8, 2020
Traders are now saying the situation is not meant to last long as oil price definitely affects the economy of many top countries around the world.
As some viewed the present situation as a perfect opportunity to buy Bitcoin and accumulate at the bottom. The co-founder of Kenetic Capital, Jehan Chu, explained to CNBC that in the long term, Bitcoin would sure be profitable for those who can wait.
“For those who have long term investment horizons, bitcoin is absolutely a buy during these dips. 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”