Bitcoin Price Dropped Below $6,000 and Keeps Sinking

News and Analysis

Today, on March 12, the price of Bitcoin dropped below $6,000, at some point reaching $5,900 on the Bitstamp exchange.

The chart below shows that the price drop was abrupt, amid an impressive surge in trading volumes:

Bitstamp BTC/USD chart

Bitstamp BTC/USD chart. Source: TradingView

The top ten most capitalized assets right now look like this:

Top 10 cryptocurrencies by market cap

Top 10 cryptocurrencies by market cap. Source: Coinmarketcap

Most of the top cryptocurrencies dropped by almost 30%. The Tether stable coin repeatedly lost parity with the underlying dollar.

Binance CEO Changpeng Zhao reported some delays and malfunctions. According to him, the load on the system today was 5 times higher than previous peak values.

According to trader Alex Krueger, the popular Chainlink token (LINK) at some point collapsed by 99.9%, to the level of $0.0001.

The panic sale lowered the price of Bitcoin below $5,550 on the Binance futures platform.

Binance BTC price chart

Binance BTC price chart. Source: Binance

Bitcoin positions worth $900 million were liquidated on the BitMEX crypto-derivative exchange.

BitMEX long and short positions

BitMEX long and short positions. Source: Datamish

Following the unraveling panic, the cryptocurrency “fear and greed index” has reached a new low of 14 (“extreme fear”).

Crypto Fear & Greed index

Crypto Fear & Greed index. Source:

The total capitalization of the cryptocurrency market decreased by about a quarter.

A sharp drop in the price of Bitcoin occurred against the backdrop of the continued collapse of traditional markets. The key European stock indices: German DAX, French CAC and British FTSE 100 have fallen by 6%. Futures on the S&P 500 signal the opening of the US stock market with at least a 4.5% fall. The value of traditional protective assets (gold, the Japanese Yen, and US treasury bonds) is slightly increasing.

The trigger for a new round of hectic sales in the stock market was the World Trade Organization’s recognition of the outbreak of the coronavirus as a global pandemic, as well as the introduction by the U.S. President Donald Trump of a ban on entering the United States from Europe.

Investors continue to raise interest rates on the approaching crisis in the global economy.

Stay tuned.

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