According to experts, the news about the coronavirus provokes a panic in the cryptocurrency market. Mainly due to the fact that the World Health Organization declared the new virus a pandemic, and authorities in dozens of countries quarantined citizens. According to the most recent data, the number of people infected with coronavirus in the world exceeded 408 thousand, while more than 18 thousand infected people died.
More recently, the price of Bitcoin fell by a quarter and for the first time since May 2019 reached below $ 6,000. Analysts argue that the drop in the value of the first cryptocurrency in the world is most related to the situation in the world associated with the WHO announcement of the coronavirus pandemic. Investors began to panic and began to actively sell digital money. And vice versa – intensively buy up such “eternal” resources as gold.
Similar dynamics can be observed with the prices of other digital assets. For example, Ethereum dropped to $ 135, Bitcoin Cash to $ 217, Litecoin to $ 38 and Ripple to $ 0.16. The values of digital currencies are indicated as of March 25, 2020. The total market capitalization of digital assets decreased by a third and amounts to approximately $ 180 billion.
If earlier investors perceived electronic assets as a worthy alternative to the current financial system, now the vector of preferences has changed and is of a different nature. As a result of the general confusion, cryptocurrencies again went into the category of risky assets, which should be sold first during periods of market instability.
However, according to analytical forecasts, around the world, a prolonged decline in prices for bitcoin and other digital currencies is not expected. Cryptocurrency rates will gradually recover in the coming months. By the end of spring, the restoration of previous token prices is forecasted. The cryptocurrency market will be completely balanced.
According to the most common opinion, prices can recover by 5-10% in the near future. Moreover, some experts continue to mention such support for the cryptocurrency market as the launch of new currencies Libra and Gram.