Bitcoin (BTC), the most popular and largest cryptocurrency in the world is experiencing moments of volatility. In the last 24 hours, Bitcoin fell from $6,200 to $5,900 for a short period of time. Nonetheless, the virtual currency has already recovered its previous price and it is currently traded above $6,150.
Bitcoin and Cryptos Experience Volatility
Bitcoin and virtual currencies are entering a new week that could define the future of the market for the coming weeks. The last few days were completely difficult for Bitcoin. As the general financial market plummetted, cryptocurrencies were affected, harming investors in the space.
While many users considered that the entire market was going to be reaching new highs this year and after having a great beginning in 2020, the main question is to know what will happen in the near future.
Governments are investing large sums of money in order to fight against the current financial market downturn. As the Coronavirus expanded all over the world, millions of individuals lost their jobs and many others do not know what can happen to them in the near future. This is why this could have a negative impact on the cryptocurrency market and the future of the space. People without work means that they would not be able to have access to the crypto market.
At the same time, these individuals and other investors are de-risking their positions and investments. The U.S. dollar (USD) has strengthened in the last few weeks against emerging market currencies and fixed-term investments have been also demanded.
The entire cryptocurrency market is now being traded with moderated to small losses. Bitcoin, Ethereum (ETH) and XRP are falling 0.54%, 0.76% and 3.29%, respectively. Meanwhile, Bitcoin SV (BSV) and Litecoin (LTC) are galling by 0.60% and 1.20%, respectively. Among the top 10, only Bitcoin Cash (BCH) is registering gains (0.13%).
If the markets start recovering now, cryptocurrencies could start moving higher. It is worth mentioning that there has been a growing correlation between Bitcoin, virtual currencies and traditional financial markets. Thus, financial markets may define the way investors enter the crypto space or not and how much money they will invest in it.
The Coronavirus has affected the entire market and virtual currencies have not been out from the current situation.