Bitcoin’s value recently dropped below $6500, a new low for 2020 after Trump announced that he was banning all travel from mainland Europe. Within 24 hours of the announcement, BTC had lost nearly 20 percent of its value. At one point, it fell slightly below $6000, although it has since rallied back slightly above $6100. This is the first time that the cryptocurrency has fallen below $6500 in 2020 and it has not fallen to this low since May 2019. Just a day before, the leading crypto currency had been hovering above $7300.
Impact of the Coronavirus on Global Markets
The effects of the coronavirus have been felt in financial markets around the world. For instance, the FTSE100 fell 5 percent after the World Health Organization declared that the coronavirus outbreak was a global pandemic. Things took a turn for the worse after Trump announced that the US had issued a travel ban on 26 nations in Europe, which are part of the Schengen. This ban will come into effect on March 13.
BTC Still Up
However, experts note that despite the huge dive, the price of BTC is still up compared to the same period last year. Citizens from the UK and Ireland are not subject to this ban unless they have been to any of the 26 nations where the ban was imposed in the past 14 days.
In general, the crypto market is usually quite volatile. It sometimes plummets unexpectedly when huge amounts of crypto are sold at once. Many experts predict that is what happened in the crypto market today. In the crypto market, no two days are ever the same. Prices can drop and rise shortly after as a new wave of buyers comes in to buy the dip.
With fears of coronavirus, a small sell-off could have led to more people joining in. For now, this puts in doubt the belief that Bitcoin is a haven for geopolitical shocks. For instance, compared to gold, Bitcoin has lost about 25% of its value in the recent past, while gold has only lost 2.5% of its value.