Bitcoin’s March Dump Offers Value for Crypto Enthusiasts
- Bitcoin saw a sharp sell-off throughout March as investors sold off riskier assets, with big losses seen in stocks as well as in oil prices.
- BTC dropped by 50% from its previous $9,000 level before settling around $6,000.
- The price drop provides an opportunity for crypto believers to snap up Bitcoin as the move may have been caused by forced selling.
Institutional investment into cryptocurrency has been on the rise and it is many of those same institutions that were caught out in the recent market rout and may have liquidated BTC in order to raise capital.
The irony of the move is that BTC and crypto markets offer a decentralized investment, which was always going to be a safe haven if the banking system got into trouble. The central banks have bailed the system out for now, but the economic damage could be big, with major countries on lockdown. Retail traders now have an opportunity to buy in at cheaper prices.
Litecoin Also Dragged Lower in the Market Rout
- Litecoin was also pulled lower with the overall cryptocurrency market and the coin fell over 50% from a price of $80.00 to just below $40.00.
- The coin saw a low of $25.00, the level that provided the support for the big 2019 rally in LTC. If the market can settle here, then another move higher is possible.
If the crypto selloff seems like overkill, it appears it may have been caused by larger investment houses that were facing big losses on other assets and went into defensive mode.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.