Bitcoin falls past $7,500 as cryptos slide in global sell-off
INTERNATIONAL - Bitcoin extended declines a second day, falling past a key $7,500 support level to lead cryptocurrencies lower amid a wider global risk asset sell-off over the intensifying coronavirus crisis.
The largest digital currency fell as low as $7,353 and was down 5.6% as of 3:25 p.m. in Hong Kong, according to consolidated pricing compiled by Bloomberg.
The wider Bloomberg Galaxy Crypto Index tumbled 7%, with Ether, XRP and Litecoin also retreating.
“Investors are moving out of any risky assets,” said Vijay Ayyar, Singapore-based head of business development at crypto exchange Luno. “Even though Bitcoin is compared to gold as a safe haven asset, it’s very under-penetrated and is considered more as a risky asset to hold at this point.”
Bitcoin has proven no haven for investors, plunging almost 30% from its most recent peak in February as global markets were roiled by an increasing array of headwinds including the coronavirus outbreak and a shock plunge in crude prices.
The global stock rout extended Thursday while bond yields tumbled and currencies swung after President Donald Trump suspended travel from most of Europe and stopped short of offering a detailed U.S. economic rescue package.
With Bitcoin falling past the $7,500 level the next target on the low end may be $7,200 as a “highly traded zone in the past and key support and resistance level,” Ayyar said. “Bitcoin will usually go toward where it finds liquidity, so below $7,500 means we’re looking at $7,200 now.”