Cryptocurrency

After the brutal crypto-crash: What Bitcoin will return to $ 5,000?

Bitcoin has experienced today, Monday, again, some strong fluctuations. He initially rose to a Daily high of 5.823 $, but then lost almost $ 1,000, and fell to a daily Low of 4.857 $. What can bring the crypto-father again to a level of support of $ 5,000?

Trading under the$ 5,000 is a new standard

Last Thursday, Bitcoin the of COVID 19 triggered a panic, could not resist, brought the Coin for the first Time since April 2019 under the $ 5,000 mark. On Friday it was even worse than the oldest crypto-currency on several major stock exchanges fell to below 4,000 dollars.
At the weekend, the crypto was the market in a wait-and-see attitude in the hope that the Coronavirus would slow down the pandemic, or at least governments and Central bankers of the world would come up with stimulus packages that are effective enough to absorb the impact.
It seems that the crypto-space is connected today more than ever, with the traditional markets. You would think that Bitcoin will act as a safe haven, and those fires should be to protect your savings from market turbulence. The General panic seems to have the appetite of the investors in crypto-currencies affected.
First of all, the Bitcoin price increased to over 5,800 dollars (on some exchanges, he was traded over 5,900 dollars) after the US Central Bank lowered its interest rate in an emergency measure to Zero, and massive quantitative easing program in the amount of 700 billion dollars had started.
The cryptographic community had hoped, that the supply of cash would help in the markets of the world economy, at least temporarily – but that’s not the case. The stock markets reacted negatively and Bitcoin crashed again under $ 5,000. Investors are concerned that the actions of the Central Bank may not be sufficient.
Seema Shah, chief strategist at Principal Global Investors, told the Financial Times:

“The US Central Bank has thrown everything at it. If we are now at the end of the Central Bank action, it means that we are on our own. It is the fear that the market calms down, investors are afraid that this was all that was left there.“

What can help Bitcoin is consolidated over 5,000 dollars?

The Trust. As soon as the Coronavirus is expanding globally, the macro-economic Numbers is negative and the stock markets to test new support levels. That does not Bode well for Bitcoin can’t be Good.
Unfortunately, the outbreak begins in Europe and the USA, and we should hope that the governments fight against the spread so efficiently, as China has done. We should hope that the warm weather of the summer season will have a positive impact, although the experts are sure of that.
Crypto-investors to wait at least a positive message, before you drive the prices back up.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.