2020 Gains Are Wiped As Bitcoin Crashes To $6,000

Bitcoin continues crashing and the Bitcoin price news now show that the price of the dominant coin is at $6,095 as of press time. However, the bloodbath is continuing and as the 2020 gains are wiped, BTC has fallen by more than 22% in a single day.

The benchmark cryptocurrency even plunged to $5,578 for the first time since May 2019 this morning, erasing the gains this year completely. The move downhill also led the market cap down by about 30% to a total of $117 billion, logging what was seen as one of the biggest declines ever recorded since its inception in 2009. At the intraday high of BTC, the valuation was $134.7 billion.

Data now reveals that the 2020 gains are wiped and that the plunge came shortly after the derivatives platform BitMEX liquidated $680 million worth of XBT/USD long positions. This spillover was what led traders on all the crypto exchanges to panic-sell their spot positions and the data portals showed the average execution of 11,000 trades every second.

This panic was the same everywhere in the cryptocurrency market. The altcoin news and rumors also showed that altcoins are dependant on Bitcoin (BTC) and started their down-drop following the bloodbath which was led by the dominant coin. BTC’s 30-minute meltdown led its rival altcoins to erase up to $23 billion off the overall market, and the second largest coin ETH tanked by 30% alone. Ripple’s XRP, Bitcoin Cash’s BCH, and Bitcoin SV’s BSV also fell in the range of 29% to 32%.

The CEO of Euro Pacific Capital, Peter Schiff, said that the air is coming out of the Bitcoin bubble and iterated that the cryptocurrency did not behave as a safe haven asset as it promised against the rising Coronavirus pandemic:

“As Bitcoin crashes below 7K hodlers going down with the ship can no longer take comfort in Bitcoin still being up for the year,” Schiff noted. “Gold is still up about 8% YTD, while BTC is down by about 10%, and falling fast. Bitcoin is not living up to the hype that its digital gold.”

As #Bitcoin crashes below 7K hodlers going down with the ship can no longer take comfort in Bitcoin still being up for the year. As the air continues to come out of this bubble, the faithful will always be able to point to a past date from which the price of Bitcoin is still up.

— Peter Schiff (@PeterSchiff) March 12, 2020

The senior commodity strategist at Bloomberg Intelligence also noted that as the 2020 gains are wiped now, both Bitcoin and gold were victims of a global sell-off trend which saw the US stock markets decline to record lows.

“Bitcoin and gold-price pressure caused by a rapidly declining stock market will prove temporary, as the quasi-currency companions should regain momentum once one of the swiftest declines in S&P 500 history subsides. The Bitcoin trend is toward gold-like price action,” the analyst wrote.

Bitcoin is now risking further losses in its price.