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Bitcoin could one day reach $1,000,000, but today it’s heading towards $1,000

Bitcoin is breaking hearts. It's crashing, at times in massive fashion and the outlook is dire, from the looks of things

Earlier today, the Bitcoin price dropped below $4,000 after abruptly plummeting 11.24% to a new yearly low at $3,782. Prices of other top coins, including ether (ETH), bitcoin cash (BCH) and XRP, are also all down by over 20% Traders are pulling money out of Bitcoin to fund their margin calls on other asset classes

Bitcoin (BTC), as it turns out, is not a safe haven in times of crisis.

It’s rather a risk that investors, sooner rather than later, try to get rid off in order to stave off margin calls on the stock markets, where still most of the interests lie, albeit, themselves falling at alarming and shocking rates. 

Earlier today, the Bitcoin price dropped below $4,000 after abruptly plummeting 11.24% to a new yearly low at $3,782. It was short lived as the price quickly rebounded to $5,260, but the alarm bells were sounded. 

At time of publishing, Bitcoin was at $5,354.

A crash is looming, and the experts seem to agree that $1000 levels or below are logical. 

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

Sharp Price Declines

On top of the general macro panic impacting the market, “Today’s move lower was precipitated by the liquidation of both BTC-collateralized USD loans and levered longs in the BTC futures market,” Rich Rosenblum, co-founder of crypto market maker GSR, told The Block.

“65% loan to value has been the benchmark, so with a good amount of loans delivered with bitcoin between $8500-$9500, $6000 is where a good amount of liquidation should occur. In terms of sentiment, speculators have been overweight BTC, looking for a continued rally ahead of May’s halving. So the market had been trading a bit long, despite recent weakness,” Rosenblum added.

Prices of other top coins, including ether (ETH), bitcoin cash (BCH) and XRP, are also all down by over 20%.

Max Boonen, co-founder of crypto market maker B2C2, told The Block that a “very violent” move took place today as “risk assets are dumped across the board.”

Denis Vinokourov, head of research at London-based digital asset firm Bequant, told The Block that “widespread panic and position liquidations” took place after U.S. President Donald Trump announced sweeping new travel restrictions on Europe in a bid to combat the spread of the coronavirus, which resulted in crypto fall.

Markets around the globe are in red. Yesterday, the Dow Jones as well as the S&P 500 index closed down by 5%. The declines deepened after the World Health Organization declared coronavirus as a pandemic.

Read: Kaspersky to make voting on the blockchain a reality

Ross Middleton, chief financial officer at decentralised exchange DeversiFi, told The Block: “Traders are pulling money out of Bitcoin to fund their margin calls on other asset classes (equities, commodities, etc). There is a general ‘risk-off’ approach to all risk assets, including crypto.”

The coronavirus crisis has caused investors to push major indexes into official bear territory, with U.S. markets plunging 10% on Thursday, the worst fall since 1987, and triggering Wall Street’s 15-minute circuit breaker for the second time this week.

About 134,530 people have now been infected by the coronavirus across the world and 4,970 have died, according to a Reuters tally.

Read: Best of crypto and blockchain predictions for 2020 and beyond

A downtrend towards $1000

Bitcoin has massively crashed, losing about half its value over the last seven-day trading period, according to Forbes

The bitcoin price was down by almost 50% late last night, falling to lows of $3,850 per bitcoin on the Luxembourg-based Bitstamp exchange.

Now, amid stock market chaos and plummeting prices across the board, one veteran trader has warned the bitcoin price could crash below the $1,000 per bitcoin level.

“If I interpret the chart without bias, I would say sub $1,000 [per bitcoin],” widely-respected bitcoin and crypto trader, Peter Brandt, who successfully called bitcoin’s top in late 2017 at around $20,000 per bitcoin, said via Twitter in response to being asked where he thinks bitcoin’s floor is now.