What is happening with the Bitcoin exchange rate? Expert Opinions

Over the past day, the bitcoin rate has fallen by 30%, dropping to the level of $5000.An important role in this was played byWHO announced on the eve of the coronavirus pandemic - an economic downturn is observed in the stock and currency markets, gold and oil are falling.

We will try to figure out how long this panic can last and whether the first cryptocurrency will get out.

Mansur Huseynov, an independent cryptocurrency expert:

In my understanding, this collapse is associated with the movement in traditional assets - stocks, currencies. At the same time, I associate a sharp decline in recent hours with the liquidation of positions with a marginal leverage.

In addition to this, there are a number of DeFi assets,for example DAI, an algorithmic stablecoin provided by Ethereum and pegged to the dollar. In case of ether drawdown, part of the collateral is liquidated to maintain the exchange rate against the dollar, which puts even more pressure on the ether.

Grigory Klumov, founder of the stable cryptocurrency platform Stasis.net:

Bitcoin is falling because there are always investorsthat hold Bitcoin and, conditionally, US technology stocks. As large-scale margin calls are now occurring across all equity markets, investors are liquidating assets in other pockets to compensate for these margin calls, accumulate a cache and rethink which asset classes will benefit in the current situation.

Bitcoin definitely has a protective statusasset, but in the medium term. In the short term, markets move towards the least resistance against the maximum number of open margin positions. That is, if a lot of people have a leverage long, then the market in the short term is most likely to move down, and vice versa. Leverage short still does not appear in bitcoin, rather, the fall equalized longs and shorts. No one buys anything but food, ventilators, and stocks of mask makers.

As soon as the situation settles on globalmarkets — and it doesn’t matter whether they remain the same, whether they rise or fall — certainty will appear. And as soon as clarity appears, Bitcoin will continue the upward trend that it showed at the beginning of the year.

Denis Voskvitsov, head of the fintech company Exantech:

Bitcoin previously appreciated as perceivedas a defensive asset, but now real losses from economic stagnation began to affect the state of companies, and institutional investors began to withdraw their assets from the asset in order to cover current operating losses.

Bitcoin can be considered a protective asset, but it’s allit carries more significant risks for investors than classic financial instruments. However, at the moments when the fever begins as it is now, operational indicators come to the fore. The depth of a possible fall is now impossible to predict, up to the conditional $ 1.

George Verbitsky, trader:

Earlier this year, bitcoin rose in price againstuncontrolled "money printing" when liquidity went into risky assets, including cryptocurrencies. In addition, traditionally, bitcoin acts as a beneficiary in any geopolitical conflict: Iran was under sanctions and used a crypt to evade them. Globally, demand for crypto arises in countries where the flow of capital abroad is limited.

The recent fall in panic is due toglobal sale: someone does not have enough money to pledge, to maintain shoulder positions. They sell everything: both gold and bitcoin. The function of bitcoin is to protect against currency depreciation like gold, but it also falls into crises - people need money.

It is difficult to determine to what point Bitcoin canto fall, however, there are signs of the bottom: marginal liquidation of positions, sharp drops in quotes without news. But this can be understood either in the moment, or after the fact. Perhaps in the coming days and weeks we will see the bottom, and not even one.

As for the prospects, then for a sharp dropoften no less drastic recovery follows. Bitcoin fell sharply to $ 5600, it is possible that this will be followed by a jump in the region of $ 7000 - $ 8000. In the future, much will depend on the monetary policy of the authorities: if the markets are saturated with liquidity or centralized services or centralized stablecoins such as USDT have problems, then Bitcoin has good prospects.

Mikhail Chobanyan, founder of the Kuna exchange:

In society, it is believed that bitcoin is good.hedge from the existing financial system. I want to believe it, but is it so - we will find out in the next couple of months. I note that I keep savings in bitcoin.

Alexey Kirienko, Exante Managing Partner:

There is now a general sense of panic in the markets. The economy was hit hard by the imposition of two negative factors: the spread of coronavirus and the collapse of oil prices. Now people are losing business, work. Many sell any asset, not just cryptocurrency, in order to get a cache and close their spending. Others are out of fear of uncertainty.

It is worth noting that cryptocurrencies are more volatileby their nature, they will greatly decrease, and then they will also rise sharply. I think that in two weeks or a month the markets should stabilize. The main thing for investors now is not to panic. Who has the money in the cache now, it may be worth it to smoothly begin to build up positions.

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