For a short moment, the crypto reached $5,705.31, as per data provided by Bloomberg.
However, it has recovered a portion of losses to trade at $5,902, reflecting a loss of 23.2% in the past 24 hours, at the time of writing this article.
Reflecting Bitcoin’s sharp decline, Bloomberg Galaxy Crypto Index dropped to a low of 29%, while the Grayscale Bitcoin Trust dipped by 7%. Data from Coin360 mirrored the gloomy day for Bitcoin traders as the BTC/USD pair nosedived below $6,000.
The selloff deepened as the day progressed, with loses exceeding 20% in the past 24 hours in all the exchanges. Bitcoin’s decline was enough to drag down other altcoins such as Litecoin, Ether and Ripple.
Matthew Dibb, co-founder of the institutional-grade platform Stack, pointed out that Bitcoin would remain weak in the short-term. “The short-term outlook for Bitcoin remains bearish, as investors are clearly not looking at Bitcoin as a safe haven asset.”
Entrepreneur Alistair Milne outlined the decline as follows:
“And that looks like capitulation to me.”
And that looks like capitulation to me ….#bitcoin
— Alistair Milne (@alistairmilne) March 12, 2020
BitMEX CEO Arthur Hayes has forecast that the cryptocurrency has hit the bottom by dropping below $6,000.
Surprisingly, even traditional safe-haven assets have declined along with altcoins, which recorded huge losses across the board.
The 10-year US Treasury bond yield also appreciated Thursday, indicating that investors were dumping bonds with long-term maturity, rather than buying. Gold, another safe-haven asset also dropped over 1% Thursday.