The bitcoin price was down by almost 50% late last night, falling to lows of $3,850 per bitcoin on the Luxembourg-based Bitstamp exchange before rebounding somewhat to trade around $5,000.
Now, amid stock market chaos and plummeting prices across the board, one veteran trader has warned the bitcoin price could crash below the $1,000 per bitcoin level.
“If I interpret the chart without bias, I would say sub $1,000 [per bitcoin],” widely-respected bitcoin and crypto trader, Peter Brandt, who successfully called bitcoin’s top in late 2017 at around $20,000 per bitcoin, said via Twitter in response to being asked where he thinks bitcoin’s floor is now.
If bitcoin were to fall below the key $1,000 level it would be the first time since bitcoin’s epic 2017 bull run pushed cryptocurrencies into the international limelight.
Others in the bitcoin and cryptocurrency community are more upbeat, however.
“Bitcoin should enjoy a nice run back through $10,000 towards $20,000 by year end,” Arthur Hayes, the chief executive of Seychelles-based bitcoin and cryptocurrency exchange BitMex, wrote in his regular market report published on Thursday morning, pointing to expectations central banks around the world will “cut rates to zero” and begin “open-ended quantitative easing.”
The U.S. Federal Reserve has announced it will pump $1.5 trillion into the economy along with a raft of other measures.
However, bitcoin and cryptocurrency markets went into free fall yesterday after struggling for the last few days.
Last weekend’s sudden bitcoin sell-off, which caught many off-guard, was attributed to oil cartel Opec’s failure to reach supply cut deal over the weekend, though others think bitcoin’s crash began the day before for completely different reasons.
The coronavirus crisis has caused investors to push major indexes into official bear territory, with U.S. markets plunging 10% on Thursday, the worst fall since 1987, and triggering Wall Street’s 15-minute circuit breaker for the second time this week.
Benchmark indexes in the City of London also recorded historic daily falls, dropping the most since so-called Black Monday in 1987. In France and Germany, major indexes dived by over 12%.
The latest falls came after U.S. president Donald Trump, the Federal Reserve and the European Union’s central bank failed to reassure markets in the face of unprecedented economic slowdown.
About 134,530 people have now been infected by the coronavirus across the world and 4,970 have died, according to a Reuters tally, with a growing number of countries going into shutdown to try to contain the virus.