Feeling the pressure from a ban on Europeans traveling to the US, bitcoin (BTC) fell to around its lowest levels this year on March 12 as another wave of coronavirus panic gripped both cryptocurrency and traditional markets.
At the time of publication, the pair circled $7,330 as it reacted to news that US President Donald Trump had halted all travel to mainland Europe for 30 days.
Trump, who had previously denied that coronavirus was a threat, maintained that the risk to most Americans was “very, very low.”
This was not enough to calm markets, however, with the Dow Jones abruptly shedding 20% of its recent highs. In London, which is excluded from the travel ban, the FTSE opened down 5.1%.
Hash rate drops
As Cointelegraph reported, analysts now broadly expect bitcoin to move in step with market turmoil due to its lack of experience as a safe haven asset.
The network’s promising technical fundamentals, which had continued to hit records in recent weeks, now also felt the strain. Hash rate, a measure of the computing resources that miners were dedicating to validating the blockchain, fell from its all-time highs this week.
In the short term, should selling pressure remain, Cointelegraph Markets analyst Michael van de Poppe was looking for targets of $6,400 or $6,154.
NewsBTC was more optimistic, at least on the medium and long term, reporting that bitcoin investors are heavily accumulating the cryptocurrency despite its ongoing downtrend, which could be a positive sign for the benchmark crypto’s macro outlook.
This growth is elucidated while looking at the number of investors who hold over 1 BTC – commonly referred to as “wholecoiners” – which has been skyrocketing over the past several weeks.
This bullish factor, coupled with heightened market participation rates amongst futures and options traders, seems to suggest that the market is growing and maturing despite the intense ongoing selloff that is plaguing BTC and most other major altcoins.
The past several weeks have been rough for bitcoin and the aggregated cryptocurrency market, with BTC and most other major altcoins plummeting from their 2020 highs in late-February in a trend that has been perpetuated by the weakness in the global markets.
Although the selloff has shifted investor’s sentiment to highly bearish, it appears that retail investors still have some underlying confidence in bitcoin’s mid-to-long term outlook, as data shows that the number of wallet addresses holding over 1 BTC has just hit a fresh all-time high.
Glassnode, a prominent cryptocurrency research and analytics firm, spoke about this in a recent tweet, noting that there are now 795,630 wallets containing over 1 Bitcoin. “BTC Number of Addresses holding 1+ coins just reached an ATH of 795,630.000. Previous ATH of 795,300.000 was observed on 10 March 2020,” they noted.