author: Bart Swiatek
Bitcoin in Decline, Lowest Prices Since January
Bitcoin - one of the most popular cryptocurrencies on the market - has recently lost quite a lot. In just a few days, the price fell by as much as 17%. One of the reasons is the scandal related to the PlusToken pyramid scheme. The general condition of the markets is also important.
IN A NUTSHELL:
- Bitcoin lost 17% of its value in a few days - a single virtual coin costs $7.6 thousand;
- One of the reasons is the scandal related to the PlusToken pyramid scheme;
- Recently, Bitcoin has been following suit after the stock market situation, which are also losing out.
Forbes reports that the so-called bitcoin - one of the most popular and recognizable cryptocurrencies on the market - has lost 17% of its value over the last few days. The price of a single virtual coin is currently at the same level as in January this year, before a period of quite intensive increases - 7.6 thousand dollars. Last Sunday it was 9.2 thousand dollars..
In mid-February, the price of bitcoin was even higher - it reached 10.5 thousand dollars - but then investors started gradually withdrawing from this cryptocurrency. When it seemed that the value of the virtual coin was slowly stabilizing, the so-called PlusToken scandal struck the financial world - the people behind the related pyramid scheme embezzled more than three billion dollars, promising their customers a rate of return of around 10-30%. When the case came to light, some of the scammers started selling out their bitcoins - most likely that's what had such a negative impact on the rate.
Some experts expect further declines - according to Kiana Danial from Invest Diva, the value of bitcoin may fall to 7.3 thousand dollars. The analyst also points out that recently the cryptocurrency has been losing value similarly to other financial instruments - which means that, contrary to popular opinions, it cannot be considered a so-called "safe haven" (a term is used to describe stable assets worth investing in in troubled times - e.g. gold).
“To me, Bitcoin should be acting like gold and a safe-haven during a crisis as repeatedly its price has been inversely correlated to the stock market. So the fact that both the crypto market and the stock market are dropping at the same time, shows that many investors may not yet accept Bitcoin as gold 2.0 as broadly during the Coronavirus outbreak,” noted Danial in her statement for Forbes.