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The coronavirus hit the markets hard yesterday, but it was worse for bitcoin

The coronavirus hit the markets hard yesterday, but it was worse for bitcoin
[Photo: Thought Catalog/Unsplash]

Yesterday was a figurative bloodbath for markets across the globe. The Dow closed down 10%–its worst day since 1987. The U.K.’s FTSE was down almost 11%. Markets in France and Germany were down 12%, Spain’s markets were down 14%, and the market in Italy was down 17%.

But the financial instrument that got hit worse than all the markets above? Bitcoin. While markets were crashing yesterday, bitcoin went into an absolute free fall. The cryptocurrency started the day at $7,650 and ended it at $5,500. That’s a fall of a staggering 28.35%, according to CoinTelegraph.

Matter of fact, since the beginning of 2020, bitcoin is down over 58% from its high of $10,500. The question now is, does bitcoin bounce back–or does it have further to fall? That’s an even harder question to answer than where the traditional markets go next. Cryptocurrencies are generally much more vulnerable than traditional markets.

But one respected commodities analyst, Peter Brandt, who called bitcoin’s $5,500 price, said on Twitter that he believes that the cryptocurrency darling could fall to “sub $1,000” due to volatility in the wider financial markets and the coronavirus’s effects on the economy.

The only certainty one seems to be able to say for bitcoin is that 2020 looks to be a wild ride for the digital commodity.

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