Bitcoin Sell Off Surges After Recent Market Dip
Mar 21, 2020 at 12:09 //
News
Following the recent crash in the cryptocurrency market, many institutional investors concluded to sell off their Bitcoin holdings. Institutional investors are disposing of their BTC and stocks holdings as well as the need to have physical cash during the coronavirus pandemic increases.
Although the price of Bitcoin is struggling to recover from the recent market crush, retail investors are buying huge volumes of Bitcoin. The entire Bitcoin market seems to be having a surge in the number of new trades.
How Could this Affect the Market
When more people are buying Bitcoin than selling it, the demand for the cryptocurrency overpowers its supply. In such circumstances naturally prices will increase but with other additional negative effects. Trading Bitcoin becomes extremely tricky when more people are buying than selling.
Meanwhile price volatility still remains a hindrance to Bitcoin traders and exchanges alike. Some exchanges are considering introducing a circuit breaker that would automatically stop all trades when prices reach a certain red line or are rapidly falling.
As of March 21, bitcoin is in another downward trend, according to Coinmarketcap data. Its current price is $6,021, which is around 10% from the previous rate of $6,800. The market capitalization has also seen a negative sentiment from $124 M to $110 M.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @coinidol.com By Coin Idol, @Khareem Sudlow