COVID-19 - The major reason for the current fall of Bitcoin

[Reid]

Economy is down.
There is no work. Even if you want to, the company and the government won't let you.
But you will need to survive for that span of time.
So what do you do when given a chance to go out once a week.
You cash out some of your savings and that includes bitcoin.
You buy products that could make you survive for the week and then do it again the next week.

No money is coming in to buy back that bitcoin you sold so what is next? You sell again.
That could be one reason but that is not everything. Some holders are still sticking to the long term plan.

[Japinat]

The reason for the sudden dump, but compared to the current price now, I think bitcoin has quite recovered already.
A major dump is not new to bitcoin, in fact it has died many times but it has only recovered, so just think positive all the time that bitcoin is gonna bounce back.

It's not time to panic now, it's time to be strong and good thing bitcoin is quite impressive now, it does not pump but it's holding its price.
This is already enough for investors to trust bitcoin at this very tough times for everyone of us.

[boyptc]

They say that this one was the starter of the fall.

--> https://cointelegraph.com/news/bitcoins-plunge-due-to-traditional-markets-falling-or-plustoken-dumping

[stomachgrowls]

Economy is down.
There is no work. Even if you want to, the company and the government won't let you.
But you will need to survive for that span of time.
So what do you do when given a chance to go out once a week.
You cash out some of your savings and that includes bitcoin.
You buy products that could make you survive for the week and then do it again the next week.

No money is coming in to buy back that bitcoin you sold so what is next? You sell again.
That could be one reason but that is not everything. Some holders are still sticking to the long term plan.

This is really whats happening as of this moment where people do get prioritize into things that would able for them to survive even pulling out their investments that they have kept for so long.

We have seen that not only crypto but also stocks forex and other markets are on reds now which is understandable or no brainer for you to consider on whats happening and whats being prioritize by the people right now which is to survive.This isnt the right time for people to mind business or making money but there are still people who do take advantage into this situation.

Talking about the major reason? This might be one of the reason but we cant conclude that this is the only thing yet we know that there are lots of factors that do affect
markets globally.

[sheenshane]

This is really whats happening as of this moment where people do get prioritize into things that would able for them to survive even pulling out their investments that they have kept for so long.

This scenario was expecting due to the pandemic result and rumors were right that this pandemic has an impact on the traditional market and crypto market. So meaning, the crypto market was now tied up to the traditional market just because investors are in a panic too and hurrying to pull out their investment to buy the necessary things for the worldwide lockdown.

However, I'm still glad that Bitcoin shows improvement last week and it reached at least almost $7k price in the market. There is also an article on Cointelegraph that Crypto Traders Explain What Caused the Bitcoin Price Plunge to $3,000s.

[Kemarit]

The reason for the sudden dump, but compared to the current price now, I think bitcoin has quite recovered already.
A major dump is not new to bitcoin, in fact it has died many times but it has only recovered, so just think positive all the time that bitcoin is gonna bounce back.

I would agree that Bitcoin is so resilient that it was able to recover many times, many anti-Bitcoin says that it has died many time already. But we have to consider that this is the first time that a pandemic occur, and panic sellers reacted negatively.

It's not time to panic now, it's time to be strong and good thing bitcoin is quite impressive now, it does not pump but it's holding its price.
This is already enough for investors to trust bitcoin at this very tough times for everyone of us.

But since it has bounce back already, many have learnt their hard lessons, not to panic. Yes, there is a looming recession because of the pandemic, but we all know that Bitcoin have withstood many challenges in the past and we are going to survived again and see the price moving up in the five digit figures.

[noormcs5]

Bitcoin is falling only because of the stupid people (as shown below) or by people panic as Covid19 has nothing to do with bitcoins.

[Botnake]

People are always stupid, we elected a present to manage the government to make law that people will follow, if people are not following the law, they should be penalized, this is due to the lack of action of our government, they need to mobilize the military to arrest people violating, advise alone is not enough, it should be a strict order that everyone has to abide with it.

Bitcoin is falling only because of the stupid people (as shown below) or by people panic as Covid19 has nothing to do with bitcoins.

Where's the bitcoiner's people in the picture?? they are not stupid, they stay at home looking for the best timing to accumulate at dip.

[LeGaulois]

People have been saying for years that Bitcoin is a store of value and compare it to gold (up to call it the 'digital gold'). Now that the pandemic has begun, it's starting to show the opposite. With ETH and oil, they're taking over the worst investments place since the crisis began.

-35% and -50% in the first trimester. Super! And the best is we're only at the beginning, I won't be surprised if we see BTC under $4000.
The first real crisis Bitcoin meets and as we can see it's not doing so well as expected

On the other side, Gold, labeled as a store of value, didn't move since as you can see on the graph, and Index, equity ETF, and commodity are doing better than BTC/ETH.

Store of value! People have bought this story for years, well I guess they will learn the reality the hard way, as we say. Now they rely on the central bank to see them printing money xD.

We don't even hear about Halving anymore, by the way...

[kentrolla]

The reason behind the downfall of Bitcoin is the majority of the people who invested for short-term have already sold their BTC to buy things, I think corona is also a valid reason for this downfall. You are not allowed to work, not allowed to buy food stuff and not supposed to cash out money due to government restrictions, then howcome people will survive???

They want to sell their savings and want to make use of it in this tough situation also we cannot blame them as everyone are running out of money... It's a global crisis where everyone need to understand and move on according to that.

[The Sceptical Chymist]

What other reason do you think accounts for the fall of bitcoin at this point in time,

Bitcoin was on its way up right before the outbreak occurred, and it's pretty obvious to me that the epidemic is the sole cause of bitcoin's drop.  As supporting evidence, note that a lot of other markets have taken a hit at the same time--and I agree that a lot of it has to do with fear.  People are on lockdown; stores are closed; some items are scarce; and cash is king in times like these, so a lot of investors have sold bitcoin, stocks, gold, and whatever else to free up cash.

I don't think there's any other reasonable explanation, because there hasn't been any bad news about bitcoin since it dropped from $10k to where it is now.  It's the damn virus.

[Febo]

People have been saying for years that Bitcoin is a store of value and compare it to gold (up to call it the 'digital gold'). Now that the pandemic has begun, it's starting to show the opposite. With ETH and oil, they're taking over the worst investments place since the crisis began.

-35% and -50% in the first trimester. Super! And the best is we're only at the beginning, I won't be surprised if we see BTC under $4000.
The first real crisis Bitcoin meets and as we can see it's not doing so well as expected

On the other side, Gold, labeled as a store of value, didn't move since as you can see on the graph, and Index, equity ETF, and commodity are doing better than BTC/ETH.

Store of value! People have bought this story for years, well I guess they will learn the reality the hard way, as we say. Now they rely on the central bank to see them printing money xD.

We don't even hear about Halving anymore, by the way...

You did not need this economic stall to see that Bitcoin is not a store of value. Price of Bitcoin was so volatile in past years that was quite opposite. Bitcoin is speculative asset. And it will stay that way for many more years. One day it can happen to become store of value. But lets wait and see.

[pooya87]

They say that this one was the starter of the fall.
--> https://cointelegraph.com/news/bitcoins-plunge-due-to-traditional-markets-falling-or-plustoken-dumping

the severity of that tokens' scam and its effects on the market has been greatly exaggerated, like always. not to mention that at any time there is usually some token scamming, some elaborate scheme emptying gullible people's pockets, some exchange being hacked,... and none of them really influence bitcoin price. but the news sites always love to link the two together as much as they can.

[exstasie]

Bitcoin was on its way up right before the outbreak occurred, and it's pretty obvious to me that the epidemic is the sole cause of bitcoin's drop.  As supporting evidence, note that a lot of other markets have taken a hit at the same time--and I agree that a lot of it has to do with fear.  People are on lockdown; stores are closed; some items are scarce; and cash is king in times like these, so a lot of investors have sold bitcoin, stocks, gold, and whatever else to free up cash.

I don't think there's any other reasonable explanation, because there hasn't been any bad news about bitcoin since it dropped from $10k to where it is now.  It's the damn virus.

All markets are related to a degree and fear associated with the pandemic definitely had a strong effect on BTC. I think that's undeniable. However I would say it amplified BTC's drop, not that it caused it.

BTC had already topped out a week before the stock market, right below very key technical levels. We never officially broke the downtrend extending from June 2019 or December 2017. In hindsight, we have to consider that we've maybe just been in a bear market for the last few years and have never broken out of it.

Yup, and there's another obvious reason why the market corrected:

[STT]

The news doesnt cause the selling in that way, I think there is more truth in the graphs then labels to why sell orders exceed the buy orders but theres always a mix of both and the market has to work out which contains the more viable path near term.      The fall for this market could be traced back to leaving a positive channel and that happened about Feb 15th.    I'd rather go off that 'signal' then saying it must be the virus that caused this.
   Some people also sell out of an asset when it loses the 200 day average definitively, again that idea isnt flawless but its more reasoned and reliable then picking news.

What happens in every market, is the prices move and there is some sentiment to that action usually but after we get a settled price for that day usually the reporters go searching for a reason why.    I dont even see this virus story as a negative, paper money literally can pass this life threatening virus onto you and your family.   What more incentive do you need to stop passing the old FIAT notes from person to person, that has to be in at last some small way a positive for BTC as more viable then the old system.
   Dollar can be digital and so they'll not be a great and obvious effect but I think BTC will gain at least a little bit more reputation for the way it has got through this fairly large event and done its job.

[RealMalatesta]

It is very important to mark down the stupidity of people right now, all the people you see going around the world walking and even some people who are spitting to other people, they are all voting.

Yes, that is right democracy that you think so highly of, the rights of many, the electibility of anyone that wants, voting rights of every citizen, all comes down to this. All of those "civilized world" stuff people talk about when saying everyone should have equal votes, goes to show you that all of those anti-vax people, all of those walking around when prohibited, people who literally lick products and put back, votes. These are the people who decide on a president in every nation. This is not just stupidity this is willful ignorance and being evil with it.

[pooya87]

to OP:
you should try to explain why bitcoin price has been rising for the past 2 days specially when you consider the fact that other markets are still in dumping mode and the situation with COVID-19 is getting even worse with both the number of infected people and number of deaths is setting a new record every day in US. not to mention the total number surpassed 1 million.
if the pandemic had played any "major" role in bitcoin price drop then it should have caused a bigger drop in the past couple of days too.

[btc78]

you have already pointed everything that connect from Corona pandemic to the falling market because i can feel what you have said.

i also sold some Bitcoin recently but not because of panic instead because of short income because now i cannot accept sidelines to make extra income.

the family is spending more now as all is staying in house and doing nothing but spending.

[Natalim]

you have already pointed everything that connect from Corona pandemic to the falling market because i can feel what you have said.

i also sold some Bitcoin recently but not because of panic instead because of short income because now i cannot accept sidelines to make extra income.

In order to survive, you have to do everything but not all people are doing the same, big portion of the investors are here for real business, they don't mix their personal from their investment, so they can withstand even if the market will dump temporarily.

the family is spending more now as all is staying in house and doing nothing but spending.

I think it's the opposite, based on my experience, I have less expenses now as I gamble less and I could not go outside to entertain myself and every time I like to entertainment, I spend money. At home now, all we will take care is only our needs.

[wildzeros]

The crash that occurred was caused by the stock market nose diving and investors becoming risk adverse and hedging or cashing out altogether, but it has survived and should be moderately improved by the time the halving arrives