Archive March 2020

Bitcoin has the biggest daily drop in history and melts 50% in one week

bitcoin falling

After the most famous virtual currency plummets 35% in 24 hours, investors are divided between recovery prospects and even stronger forecasts of falls.

bitcoin fall
bitcoin fall

Cryptoeconomics panic: bitcoin, the first and most famous of virtual currencies, fell by more than 35% in one day last Thursday and reached a 50% devaluation in a week.

The fall was such that the price of crypto fell below US$ 5,000, for years a level considered as a minimum reference ("floor") by experts and investors.

Other virtual currencies, such as ethereum, XRP, litecoin and bitcoin cash, have also been experiencing declines. And, like everything that still touches cryptocurrencies, the behavior of prices has been erratic and difficult to explain in the midst of the coronavirus epidemic.

At first, bitcoin tried to resist the bumps that have been shaking markets since January. In early February, enthusiasts celebrated: until then, crypto accumulated a 32% increase in 2020, while traditional assets - stocks, commodities, debentures, funds - suffered.

On Friday, March 6, the currency ended the day (always at US reference times, as there are no stock exchanges - and therefore trading hours - for cryptocurrencies) quoted at US$ 9,122,55.

The price started to fall during the weekend, in parallel with news about the pandemic's upsurge and the increase in the number of fatalities in European countries, such as Italy and Spain. The drop came to 10% in 24 hours, and experts accused a “fire test” for the crypto, which, for the first time, was subjected to a systemic crisis context.

"bitcoin, it is worth remembering, was born in 2009, after the major subprime crash in the United States in 2008, in turn the last major global crisis. Its precepts even credited the creation to a response to the vulnerabilities of the traditional financial system and fiat currencies that, according to the creator - or the creators - of bitcoin, had been the reasons for that financial crisis."