THE value of Bitcoin has plunged below £5,000 to a 2020 low after President Trump introduced a Europe travel ban.
Bitcoin's value dropped by 20 per cent overnight to to £4,706, although it has tumbled further to as low as £4,420 this morning before rallying slightly this afternoon.
⚠️ Read our coronavirus live blog for the latest news & updates
It's the first time the cryptocurrency has fallen below £5,000 this year, and it hasn't been this low since May 2019.
Bitcoin's value was hovering around £6,000 yesterday, although it did hit £8,000 just last month.
Markets around the world have taken a pummelling as coronavirus affects world trade, and only today the FTSE100 fell 5 per cent after coronavirus was declared a pandemic by the World Health Organisation.
They've also taken a knock after President Trump today announced a US travel ban on 26 European countries in the "Schengen Area" from Friday (March 13).
The UK and Ireland aren't includes in this ban, unless residents have been to a Schengen zone area 14 days prior to going to the US, but it's still sent jitters around the globe.
Coronavirus cases in the US currently exceed 1,200 with at least 37 deaths.
In the UK, there have been 460 cases reported so far with eight deaths.
Cryptocurrency values tend to be fairly volatile in general and can often plummet when large chunks are sold off in one go, which is what experts say happened this morning.
Danny Scott, chief executive of cryptocurrency platform, CoinCorner said: “As always in the bitcoin industry, no two days are ever the same and price drops like the one we’ve seen today are not uncommon.
"Bitcoin is based on supply and demand, meaning that when a big chunk is sold off – which is what looks to have happened this morning – the price will naturally be affected, causing other market traders to panic sell.
"Coronavirus fears – which have caused chaos in the stock markets over the last few weeks – have people already feeling uneasy, so any drop in the price only feeds into this."
But Mr Scott points out that Bitcoin's value is still up compared to this time last year when prices fell as low as £2,600.
That said, it's not been able to reach its December 2017 peak of just under £16,000 since.
Bitcoin is a virtual currency traded between people without the help on a bank. It's one of a number of cryptocurrencies but is widely considered to be the most popular.
Source: Read Full Article