Bitcoin maximalists are still trying to understand the reasons for the recent cryptocurrency downfall, which led to more than halved price loss for the main cryptocurrency.
Some analysts stated the down culprits were mainly the institutions affected by panic due to the coronavirus. For example, Jimmy Song, a well-known bitcoin supporter, admitted that ‘today proves that institutions buying Bitcoin has a flip side.’
However, it could also be panic clearance sales, comparable to the gold give-aways in 2009, when people fought against the global financial crisis.
Michael Novogratz, Galaxy Digital CEO, responded to Song’s words by stating that was not about the institutions but about a collapse because of the borrowed funds use. He said institutions can’t respond so quickly to make such a strong give-away. Instead, that was a panic sale by margin traders.
The Bitcoin downfall caused many discussions about its security. For example, BlockTower Capital CIO Ari Paul also gave his related opinion:
‘When everyone is affected by panic, they sell everything except money, because they need to have something to buy food and pay for their apartment. Fear causes a falldown of everything except money.’ Also, Ari Paul added Bitcoin feels good exactly when people are afraid of cash, or to be more specific, of its depreciation.
