The fall in cryptocurrency markets was a result of a broader sell-off in equities as governments continued to struggle with the global outbreak of the coronavirus.
On March 12, bitcoin was down 48 percent from 24 hours before at $4,001.60 — reaching levels not seen since April 2019, according to CNBC.
The total market capitalization of all crypto fell from $223 billion to $161 billion, Yahoo reported.
On March 31, at the time of writing, the bitcoin price was $6,441.
Other supposed safe-haven assets like gold fell 3.5 percent on March 12 and continued its volatility throughout the month. By the end of March, the gold price was trading at around $1635 an ounce, down $65 per ounce from early March’s new seven-year highs.
Although investors expect major volatility in the near future, many of them are optimistic when considering the long term.
Oliver Von Landsberg-Sandie, CEO of BCB Group, said that the market was not for the faint-hearted.
“Ahead of the halving, we have a half-price sale and it won’t last long. The market is oversold on correlated global economic jitters and it’s not hard to see a short term correction,” Landsberg-Sadie said.
According to Von Landsberg-Sandie, there is a small glimmer of hope for those high-net individuals who continue to put in purchase orders for bitcoin despite the current economic turmoil.
Some investors stated that it was the long term perspective that offered more promising returns on their investment while traders await the bloodbath in global markets to conclude.
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“In the long term, we see this period as an opportunity for many investors to get exposure to the asset class at attractive prices,” said Asim Ahmad, a founding partner at Eterna Capital.
“In the short term we expect the bitcoin price to follow the market sentiment driven by monetary and fiscal policies in response to COVID-19 developments,” Ahmad added.