Amid the ongoing financial crisis caused by the outbreak of deadly coronavirus, the total market of cryptocurrencies was wiped off by $26 Billion in 24 hours. According to Coinmarketcap.com, a website keeps the track of the total volume of cryptocurrency, the market capitalization of digital assets was reduced considerably with sell-offs in stocks and plunge in Oil price.
The massive sell-off in the digital currency market was noticed right after the price of Oil according to international benchmark Brent Crude took a nosedive during the price up to 30%, the lowest price since the crash triggered by the Sudia Arabia disagreement with OPEC on production cut back in Feb 2016. Although the Oil price has not a direct correlation with the Cryptocurrency market, the overall trade is notably affected by this sharp downward movement in Oil price.
Major Cryptocurrency by total market cap, Bitcoin price went down 10 % impacting the overall market cap of the crypto market. Furthermore, the price of other top ten cryptocurrencies, such as XRP, Bitcoin Cash and Ethereum also crashed in double-digit percentage leading to the violent crash of the overall digital currency market.
Apart from Cryptocurrency, the stock markets also noted a significant download movement on the same day. Since the outbreak of coronavirus and restriction on the movement of goods in China, the world trade and economy are following a downward path and there is no sign for recovery yet.
While some of the experts are claiming to sell the cryptocurrency to avoid any further loss as we have witnessed in the early weeks of January 2018, prominent traders find it as a golden opportunity to buy the dip. The statement is also coming in the support of investment in cryptocurrencies after the landmark decision taken by the central government of India and South Korea in providing the digital currency a legal status.