Bitcoin has been falling to its lowest levels since the 2020 rally first began. But the crypto asset had been showing some positive signs that the pullback was coming to an end.
However, the analyst that had laid out a highly bullish case for Bitcoin with numerous factors fueling the next rise, has ditched his long positions following the latest developments surrounding the coronavirus and the global response to the rapid growth of the pandemic.
Investor Dumps Losing Bitcoin Position After Bullish Signals Fade
Investors and traders perform best when they do extensive analysis of the asset they’re considering, which can include fundamental analysis, technical analysis, and paying close attention to the news cycle or any economic factors that can influence trends or price action.
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One Bitcoin investor had made his contrarian position in the first-ever cryptocurrency public and backed up his decision to buy amidst a massive selloff with many highly bullish factors.
These included Bitcoin holding better than gold – the original safe haven asset – along with bidders stepping in after the stock market collapse, buyers absorbing million dollar market sells of Bitcoin, and the potential for more Federal Reserve rate cuts to combat the coronavirus’ impact on the economy.
However, the same analyst and investor, has closed out their long positions, following a phone conference led by US Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell with G7 Finance Ministers and Central Bank Governors.
Out of all longs. https://t.co/8Snzxi66ot
— light (@LightCrypto) March 3, 2020
Finance Leaders Fail To Ease Coronavirus Concerns, Causing Widespread Panic
It appears that the trader isn’t convinced by the steps being taken by those currently controlling the world’s economy to offset the potential impact of the coronavirus.
Earlier today, the Federal Reserve announced another rate cut, causing Bitcoin and gold to surge.
However, much as the analyst warned of, Bitcoin is already dropping like a fly once again, while gold continues to grow in strength the closer the economy gets to a full-scale recession.
Last week, the stock market experienced the largest crash since the last recession, prompting additional fears and panic, and causing Bitcoin and other crypto assets to collapse.
Related Reading | Has the Coronavirus Put an End To the Bitcoin Safe Haven Narrative?
The asset class had been up over 50% year to date following a powerful rally, but the coronavirus has proven too strong for cryptocurrencies to break free from their downtrends.
With the coronavirus only spreading more rapidly and the death roll growing by the day, the fear impacting the market and Bitcoin is likely to remain for the foreseeable future, or until the virus is better controlled.