During the last 24 hours BTC price reached the price level of 5 823 USD. Shortly after that, Bitcoin's price dropped to 5 400 USD in 30 minutes. What caused this strong price movement?
FED announcement vs Bitcoin price
As it turned out, Bitcoin's price increased right after the United States Federal Reserve (FED) announced, that they would lower the interest rates to 0. This decision is one of many ways to fight with market turbulences caused by the panic related to coronavirus epidemic.
However, not everything went as it was planned to be. Despite FED's strong and rapid intervention, investors remain worried about long-term impact of the fact, that many countries are closing their own borders due to epidemic. Moreover, airlines are cancelling both international and some of local flights and there are curfew hours being set, to encourage citizens to stay home and prevent the disease spreading.
It is not the only BTC price that increased after FED's annoucement. Most of the altcoins followed its path.
Current situation on cryptocurrency market
Current Bitcoin price is 4 860 USD. Bitcoin's price fell down just as fast as it increased before. Over the last 24 hours. BTC price decreased by 7.97%.
It was no different with altcoins. Most of them scored a declines at level of 10%. For example, Ether, the second largest cryptocurrency in terms of market capitalization it can be seen, that its decrease occured at the same time that Bitcoin declined. Ethereum price was at level of 130 USD, then it passed a fall. Current ETH price is only 109 USD.
Tell us what do you think about cryptocurrency market situation in the comments section!