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Bulls Take Charge As Bitcoin Crashes Below $9,000

February 26, 2020 at 23:06 by Matt Jackson

Bitcoin bulls took charge in today’s trading, as the world’s largest cryptocurrency crashed from $9,250 at 13:00 GMT to a low of $8,708 at 18:00. Prices are down nearly 6% in the last 24 hours and analysts have indicated that the most likely short-term path is down. At current prices, Bitcoin is trading at its lowest prices since the end of January. The cryptocurrency rose from $7,200 at the turn of the year to $10,400 earlier this month, an increase of $3,200. The recent downturn has now wiped out 50% of this year’s increases.

Cryptocurrency is not the only market that has suffered recently. As the coronavirus continues to spread, and many health experts warn that it has become a pandemic, the Dow has crashed almost 2,000 points. During that time, gold has rallied and added to its prices. Gold is a safe-haven investment that investors and traders turn to when stocks take a dive. Many cryptocurrency enthusiasts had talked of Bitcoin offering a similar safe haven but the recent slide suggests otherwise.

Warren Buffett recently described Bitcoin as “having no value” and said that he does not and never will own any Bitcoin. This isn’t the first time that the billionaire investor has spoken out against cryptocurrency, previously describing Bitcoin as being “rat poison squared”. Billionaire Silicon Valley investor, Chamath Palihapitiya, disagrees with Buffett. Saying that he deeply respects Buffett’s opinion, he went on to say that the Berkshire Hathaway chairman’s opinion on cryptocurrency is wrong and completely outdated. Palihapitiya has, in the past, said that everybody should have 1% of their assets specifically in Bitcoin.

Finland’s customs have been hoarding a collection of 1,666 Bitcoin that they have held since September 2016. The cryptocurrency was seized during the takedown of a dark web marketplace. At the time, Bitcoin was trading at just under $600, meaning that the haul had a value of about $1 million. At current prices, the collection has a value of closer to $15 million. However, unlike many governments and customs agencies, Finland’s custom agency has said that they had concerns over selling them because buyers “rarely use them for normal endeavors.” Coindesk points out that a report from analytics firm Elliptic, in November 2019, shows that just 0.5% of all Bitcoin transactions are linked to the dark web. Other countries have had no such qualms. The US and UK governments have previously sold off stashes of seized Bitcoin, with many other governments following a similar path.

At 23:00 GMT, Bitcoin (BTC) has dropped 5.81% and is changing hands at $8,812.80 while Ethereum (ETH) prices have fallen 9.2% to trade at $227.08. Ripple (XRP) and Bitcoin Cash (BCH) are down 8.34% and 9.86% and are trading at $0.234 and $320.54 respectively. Bitcoin SV (BSV) lost 12.81% to trade at $226.36.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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