Bitcoin Below $5000 As Global Markets Tumble Amid The Coronavirus Spread

The novel COVID-19 (coronavirus) continues with its adverse effects on the financial markets. The cryptocurrency space is no exception. Bitcoin, for instance, slipped below the significant $5,000 mark and is currently trading at $4,830.

Just hours ago, the leading cryptocurrency by market cap saw a spike of $800. When the U.S. Fed Reserve made a total injection of $700 billion in treasuries and mortgage-back securities, Bitcoin jumped to almost $6,000. The bullish move, however, was short-lived, and just a few hours later, BTC finds itself even lower than before.

Since it broke down the $5,000 support level, the largest cryptocurrency has to rely on $4,800 or $4,200 if it keeps plunging. Contrary, $5,500 appears as the most vital resistance level, followed by $6,000 and $6,300.

BTCUSD 1h. Source: TraingView
BTCUSD 1h. Source: TraingView

Most of the altcoins are in even worse shape than Bitcoin. Ethereum is 10% down and is fighting to stay above $110. Ripple (-6.72%) is below $0.14, Litecoin drops with 9% to $32, and Binance Coin plunges with over 10% to $9.18.

Tezos and Chainlink are both plummeting by over 16% and are the most notable losers in the top 20 coins by market cap. Thus, XTZ is at $1,33 now, while LINK is $1.78.

Ultimately, the drop amongst the alternative coins means that Bitcoin’s dominance over the market is above 64%.

The Cryptocurrency Market. Source: coin360.com
The Cryptocurrency Market. Source: coin360.com

The traditional financial markets are in a similar situation as well. The Stoxx Europe 600 Index and the U.K. FTSE 100 Index fell by approximately 4.6%. The U.S. measures that also included cutting interest rates had a positive effect only on treasuries, but equities continue to tumble. The S&P 500 is down by almost 5%, and for the fifth time in the past six trading sessions, it triggered the stop limits.

Major Crypto Headlines

Another BitMEX – FTX Exchange Clash? Or, The Reason Why Bitcoin Crashed To $3,700? Amid the most brutal Bitcoin sell-off when its price went as low as $3,700, controversy emerged between two of the leading margin trading exchanges. BitMEX said their platform experienced “technical issues,” which eventually led to substantial liquidation levels, while FTX CEO expressed his doubts on the matter.

HODLers Give Up? Bitcoin Wallet From 2010 Just Moved 1,000 BTC Worth $7.8 Million. Hours before Bitcoin’s severe price drops to below $4,000, a long-term HODLer moved his impressive 1,000 BTC stash. The question remains if he has had enough and sold them, or is it just for security measures.

Trump Halts Flights From Europe: Stock Market Futures and Bitcoin Tumble. One of the most critical pieces of news from last week came from President Trump, who banned all travel from Europe, except the U.K. As it happens with almost any other information lately, it had an immediate adverse effect on all financial markets.

Significant Daily Gainers and Losers

Dragon Coins (105%)

As the predominant color in today’s market is red, it’s challenging to find gainers among the top 100 coins by market cap. There’s only one major exception – Dragon Coins. DRG is up by 105% against the dollar to $0.065, and skyrockets with 122% against Bitcoin to 1328 SAT.

Naturally, its market capitalization also surges, and thus Dragon Coins finds a spot in the top 100. However, with all the blood on the streets today, it could be a massive pump and dump scheme.

Komodo (-40%)

Today’s market plunge appears to be hitting Komodo the hardest. KMD is down by 40% when compared with the U.S. dollar to $0.265. It also drops by 35% against the largest cryptocurrency, and KMD/BTC now trades at 5426.

As a result of the negative price development, KMD’s total market cap is now below $32M.

Ren (-27%)

REN is also deep in the red today. It trades now at $0.03, marking a total decrease of 27% in the past 24 hours alone. Its stance against Bitcoin also declines by 20% to 621 SAT.

The downward move also threatens its positioning in the top 100 coins by market cap. So far, REN is at 94th place.

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Source: Crypto Potato