Bitcoin, the world largest cryptocurrency market has dropped off in value by over 50% in two days from Thursday to Friday.
A cryptocurrency is a digital asset that works as a medium of exchange.
On Thursday, Bitcoin dropped as much as 32% to $3,915 per Bitcoin, a fall from the $ 5,000 per Bitcoin level. The fall was first witnessed at the New York Stock Exchange, its weakest in March 2020.
The tumble in value of the Bitcoin dipped to 50% after loss in Hong Kong, one of the biggest dips in the history of the cryptocurrency.
Bitcoin has in the securities market proven to be no safe haven asset amid the current global market crash as a result of the coronavirus.
According to Bloomberg, Galaxy Crypto Index tracking, digital assets had witnessed a three-year historic fall from August 2017, as it slid to 49% over the two sessions.
Ross Middleton, a chief financial officer at crypto exchange DeversiFi told Bloomberg that, “Traders are pulling money out of Bitcoin to fund their margin calls on other asset classes,
“Perhaps they think that there will be better short-term opportunities to go long other asset classes in the near future.”
The oil war between Saudi Arabia led Organisation of Petroleum Exporting Countries (OPEC) and Russia, which dipped Brent oil to $30 per barrel on Monday, crashed major stock markets and the cryptocurrency assets were also hit.
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