Bitcoin falls below $7,500, Investors doubt safe haven claims

Bitcoin price has been in sharp decline with the coin falling below $7,500, as investors continue to sell amid the escalating coronavirus crisis.

At the time of writing, the largest cryptocurrency has dropped by another 5.8% in the last 24 hours, currently sitting at the price of $7,390 per coin. Ethereum is performing poorly, with a decline of 14% in the last 24 hours, and a current price of $170,59.

Other altcoins on the top 10 list are all suffering losses, often larger than 10%, amid fears of a world slowdown sparked by the outbreak.

The gold spot price has jumped 28% this year to $1,63635 per troy ounce in afternoon trading today acting as a safe haven for investors. By contrast Bitcoin has fallen almost 30% from its most recent peak in February as global markets were roiled by an increasing array of headwinds including the coronavirus outbreak and a shock plunge in crude prices.

Jeffrey Levine, chief executive of Blueprint Wealth Alliance, said on Twitter earlier this week: “I take no pleasure in seeing anyone lose money, and I’m still open to cryto investing, but can we please agree the last few weeks have shown that crypto is NOT the safe storer of value that so many of its proponents have claimed?”

After this drop past $7,500, the next target on the low end is believed to be $7,200. Experts consider this level to be the key support and resistance level, and it was a highly-traded zone in the past. Vijay Ayyar, Singapore-based head of business development at crypto exchange Luno, said that the coin is moving towards the level where there is liquidity, and since it did not find it at $7,500, the next most likely level is at $7,200.

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Ali Raza

A journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.

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