There has been no direct connection between the Coronavirus outbreak and crypto market correction but the signs are there. The crypto crash is accelerating as investors start to panic, a flurry of fake news on social media is not helping matters.
Crypto Markets Crushed
Crypto currency markets have lost a whopping $50 billion since the beginning of the week as the selloff accelerates. In the past 24 hours alone total market capitalization has dumped another 7.5% to $240 billion as this year’s gains go up in digital smoke.
Bitcoin has fallen through several key support levels, the last one being in the high $8k range. Its next big test is a hold of heavy support at $8,300. Failure to do this will likely result in complete capitulation for the majority of altcoins.
At the time of writing BTC was holding the $8,700 level where it was this time last month. The rest of the market though has dumped hard with Ethereum dropping another 9% and several of the others dropping double digits for the second day in a row.
The correction so far stands at around 18% for bitcoin so it could have further to fall. As usual the BTC detractors are posting with glee today but the fact remains that this is all still perfectly normal for crypto markets regardless of the Coronavirus (Corvid-19) outbreak.
Fake News Epidemic
It appears that fake news is spreading faster than the virus itself and as usual, social media is its epicenter. Facebook, which is a hotbed for misinformation, has recently introduced measures to block any adverts related to or even mentioning Coronavirus. A company spokesman told Business Insider;
“We recently implemented a policy to prohibit ads that refer to the coronavirus and create a sense of urgency,