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Bitcoin just lost 10% of its value in 24 hours, equivalent to over $26 billion

Not unlike the rest of the world, Bitcoin is having a crisis of its own, one that wiped out $26 billion from its overall market.

Other cryptocurrencies like Ripple and Ethereum saw similar dips Bitcoin currently trades at $7,802 Some investors disagree about the impact of Covid-19, and rather believe that Bitcoin will skyrocket after the halving event in May

With the rest of the world’s major industries impacted by the Coronavirus outbreak, it was only natural that Bitcoin (BTC) would follow suit. The crytocurrency lost 10% of its value since Sunday, wiping out over $26 billion off the BTC market. As of this writing, Bitcoin is trading at around $7,802.12, a far cry from mid-February’s $10,500. While 2020 had continued the currency’s slow recovery from 2019, it seems the Coronavirus has put the brakes on investors’ dreams. 

While we’re often lead to believe that Bitcoin is a decentralized currency, one not affiliated with any government or subject to the whims of international fiscal policy, the challenging times brought upon by Covid-19 are proving otherwise. Bitcoin does not exist in a bubble, and as long as there are real human beings buying and selling it, it will continue to be swayed by the tide of global issues. 

Graph: Coindesk

Still, some BTC investors disagree about the influence of Covid-19, and believe that the current dip is instead triggered by the incoming halving event in May, which will half the amount of Bitcoins awarded per mine blocked, making the currency even rarer.

Mostafa Al-Mashita of the Canadian crypto enterprise Secure Digital Markets, told news site LiveBitcoinNews that the ongoing decrease is “a relief rally.”

“In my opinion, we have a likelihood of sweeping another low before the post-halving rally,” he said.

Some even see it as another haven besides gold, which saw panic buying in recent weeks as Covid-19 worries continued to mount.

“I believe gold and bitcoin are safe havens,” said Henrik Kugelberg, a crypto OTC trader in Sweden. “As coronavirus has just started to spread, I believe a strong market will last well until the halving will have effect. To me, it is plausible that we can hit an all-time high this year, perhaps within six months.”

There is a silver lining, however. This outbreak won’t last forever, and as the aforementioned industry members posit, there will be a rush for BTC. Maybe after the halvening, maybe next year when a vaccine is developed, and maybe in a few years. Regardless, Bitcoin has only one place to go as we put more faith in digital coins and tokens: Up. 

Therefore, now is the perfect time to buy Bitcoin, as this investor attests:

“For those who have long term investment horizons, Bitcoin is absolutely a buy during these dips,” Jehan Chu, co-founder of Kenetic Capital, an investor in blockchain start-ups told CNBC. “We can expect more of this volatility sparked by macro health and financial shocks, but ultimately long term investments in the digital future and it’s key asset Bitcoin will be a winning strategy.”