Update: The price of Bitcoin has now dropped significantly below the $9,000 mark. One Bitcoin is now worth around $8,850—clearly the support failed.
Bitcoin (BTC) has dropped below $9,000 for the first time in almost a month. The cryptocurrency has broken fell down to $8,979 before recovering just slightly above the $9,000 price point. But the psychological support level may not last long.
Despite reaching a 2020 high of over $10,400 less than two weeks ago, Bitcoin has been in a strong decline ever since. Much of this bearish momentum occurred in the last day, during which Bitcoin lost five percent of its value as more than $7 billion was wiped from its market capitalization.
Practically every major cryptocurrency is experiencing big losses today, with some cryptocurrencies in the top ten by market capitalization down more than 12%. On the whole, the total cryptocurrency market has shrunk by 5.6%, indicating that Bitcoin is performing better than most cryptocurrencies.
It isn't just the cryptocurrency market that is in decline either; most other financial markets have also struggled in recent weeks. Some analysts suspect the recent coronavirus outbreak is the cause behind the recent market volatility. The situation is getting to a point where some blockchain companies are now beginning to roll out an action plan to safeguard against the virus.
But if it continues to spread, it could have a devastating impact on the crypto market in China and beyond.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.