Bitcoin Price Plunges to $9,050 on Growing Uncertainty

The world’s most dominant cryptocurrency Bitcoin declined to $9,050 on Thursday after failing to break the $10,000 resistant level.

The coin plunged from $9962 on Thursday to $9,050 a coin before retracing on Friday during the Asian trading session to $9,486 as of 1:00 pm Nigerian time.

This was after the Federal Reserve said the economy may take several years to recover from the COVID-19 pandemic downturn despite the huge stimulus being pumped into the economy by Donald Trump. The unexpected comments led to a huge selloff in the US stock market and weighed on other global assets as investors remain apprehensive amid rising global uncertainty.

“A switch to ‘risk-off’ in global markets could lead to further downside pressure for major cryptocurrencies,” said Matthew Dibb, co-founder of Stack, a provider of cryptocurrency trackers and index funds.

The drop was coming after several Bitcoin focused media have reported a substantial increase in the coin acquisition by large buyers within the crypto ecosystem, known as whales.

As predicted by Investors King on Thursday, the activity of the Whales would help establish strong support for the coin above $9,000 level but not enough to open up a $10,519 key resistance level. Capital inflow from outside investors or funds from institutional investors is needed to support price above the current level through $10,519.

This may not happen in the near-term given global risk and also cryptocurrency exposure to hackers. On Thursday, 400 BTC estimated at about $4.1 million stolen from Bitfinex, a cryptocurrency exchange, in 2019 was moved to an unknown address, according to a twitter bot Whale Alert.

While another big transaction estimated at about $1.5 billion was performed by an unknown wallet on Tuesday. A combination of all these is fueling a notion that whales might be preparing to dump their holdings and plunge the digital currency below the current level.