WYP
News Guru
What's the value of Bitcoin when the markets are bad?
Read more about Bitcoin pricing dropping by over 40% the past week.
Read more about Bitcoin pricing dropping by over 40% the past week.
Bitcoin Prices Plunge by over 40% this week amid market turmoil
- Thread starter WYP
- Start date
Essentially when the stock markets start to tumble like yesterday(Especially with the S&P500), traders need to sell off any liquid assets they can in order to meet margin calls, so all commodities and risk-on assets like Bitcoin will have constant selling pressure during the period, usually this wanes over the following days and things begin to return to previous buying pressures (And eventually after prices) once everything has stabilised.
Of course, since the real route cause here is the coronavirus, no one can say really if anyone is out of the woods yet, and if there was a 2nd S&P500 sell off with BTC market cap so low now it could plunge even further.
BUT, a global recession in and of itself wouldn't be the killer risk to crypto, it's more the instantaneous side effects of the stock market crashes that do it.
Of course, since the real route cause here is the coronavirus, no one can say really if anyone is out of the woods yet, and if there was a 2nd S&P500 sell off with BTC market cap so low now it could plunge even further.
BUT, a global recession in and of itself wouldn't be the killer risk to crypto, it's more the instantaneous side effects of the stock market crashes that do it.
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