Bitcoin Tackles $6K After 20% Crash as Stocks Rival 1987 Apocalypse

Published at: March 12, 2020

Bitcoin (BTC) struggled to turn $6,000 into support during trading on March 12 as the second “Black Monday” event in the same week pushed stocks to perilous lows.

Cryptocurrency market daily overview. Source: Coin360

BTC bounces off $5,700 floor

Data from Coin360 and Cointelegraph Markets showed BTC/USD trying and failing to recapture $6,000 after shedding 20% in a single hour.

As Cointelegraph reported, Donald Trump’s travel ban set the scene for a coronavirus panic attack on Bitcoin markets, with the cryptocurrency crashing to 10-month lows of $5,720.

On an hourly time frame, the event marked Bitcoin’s worst performance on record.

At press time, those lows remained, BTC/USD trading in a roughly $400 corridor as Wall Street faced another day’s losses.

Cryptocurrency market daily overview. Source: Coin360

Trading ceased for 15 minutes after stocks shed 7% upon opening Thursday morning in New York. The Dow Jones fell 9%, while the S&P 500 rapidly lost 9%.

After trading began in London, the United Kingdom’s FTSE 100 index hemorrhaged value — as one commentator noted, were it to close at press time levels, the FTSE would have had its worst day since the 1987 “Black Monday.”

Traders shudder at fiat money printing plans

Bitcoin’s performance came in for criticism from familiar faces. Gold bug Peter Schiff claimed that its downturn on the daily meant it could hardly stand up to the title of “digital gold” — the precious metal lost a comparatively modest 2.5% on the day. 

For supporters of Bitcoin, however, it was central banks’ response to the crisis which proved most difficult to swallow.

A raft of stimulus packages surfaced from governments, based around the idea of flooding markets with liquidity conjured from thin air.

Twitter user Hodlonaut, creator of 2019’s Lightning Torch transaction relay, summarized:

“Translation: We will print harder than we have ever printed.”

Cointelegraph Markets analyst filbfilb meanwhile urged caution. Pointing to Bitcoin’s mempool, which showed significant volumes of coins circulating, he argued that betting on recovery was too risky at present.

“I just can’t be long while I know there is so much BTC in transit,” he told subscribers of his Telegram trading channel.

Keep track of top crypto markets in real time here
Tags
Related Posts
Bitcoin bulls make a run on $45K after Twitter debuts crypto tipping
Bullish optimism is on the rise across the cryptocurrency market on Sept. 23 as prices continue to recover from this week's volatility which was the result of regulatory pressure on the crypto sector, the Federal Open Market Committee meeting on the Fed's interest rate hikes and monetary policy, along with fears that the Evergrande situation would ripple out to impact global financial markets. Data from Cointelegraph Markets Pro and TradingView shows that after trading in a range between $43,000 and $44,300 during the early trading hours on Sept. 23, the price of Bitcoin (BTC) spiked above $44,800 in the early …
Bitcoin / Sept. 23, 2021
Institutional demand for Bitcoin evaporates as BTC struggles below $31K
The rocky road that Bitcoin (BTC) has been on for the past two months continues as a widely predicted move downward materialized in the early hours on Monday and dropped the price of BTC below $31,000. Data from Cointelegraph Markets Pro and TradingView shows that a wave of mid-day selling pushed the price of BTC to a low of $30,400 before bulls arrived to provide support and lift the price back to $30,850. The market as a whole continues to face an uphill battle as the miner exodus following China’s crackdown on the mining industry has led to the fourth …
Bitcoin / July 20, 2021
Altcoins notch triple-digit gains as Bitcoin price pushes toward $60K
If this past weekend is any indication of the current bull market cycle, then an altcoin season may be well underway. Similar to previous cycles, after Bitcoin (BTC) makes a significant run-up in price and then enters a consolidation period, funds begin to migrate into large and small market cap altcoins. Data from Cointelegraph Markets and TradingView shows that while Bitcoin traded in a range between $57,000 and $60,200 over the past week, multiple altcoins saw double-digit gains as exchange listings and protocol developments brought a new wave of enthusiasm and trading volume for select projects. Tron ecosystem leads the …
Blockchain / April 6, 2021
Bitcoin sell-off over? Strong 'buy the dip' signal flashes for the first time in 5 months
The price of Bitcoin (BTC) has dropped to the key $44,000-$45,000 support level on Feb. 28 for the third time in the past week. The BTC/USD pair briefly dipped below $44,000 on Bitstamp before paring some of the losses, bouncing back above $45,000 at the time of writing. 'Full rest' for SOPR, funding rates Some analysts have pointed out an uptick in miners' selling as the reason behind the latest drop in price. It's a whale war, and you know who got the real power. US Institutional Investors - Coinbase Outflow = STRONG BUY - Coinbase Premium = BUY BTC …
Bitcoin / Feb. 28, 2021
Bitcoin Price Falls Below $6,000 on Declining Trading Volume
For the second time in one week Bitcoin (BTC) price has fallen below $6,000. Today’s pullback below the $6,000 mark comes as the weekly and monthly close approach and its possible that the price could also be influenced by investors fear that traditional markets may continue to correct at Monday’s opening bell. Crypto market daily price chart. Source: Coin360 At the time of writing the price is trading at $5,917 after bulls failed to hold the $6,200 support. For the short term, Bitcoin will need to hold $5,850 or traders will set their sights on $5,700, a point where the …
Bitcoin / March 29, 2020