During The Crypto Bloodbath Chainlink (LINK) Traded 99% Down
Chainlink (LINK) traded at tremendously low levels during the crypto bloodbath experienced just a few days ago. The cryptocurrency, which was previously performing well and was even showing signs of a potential bull run, shocked the market when it lost 99.99% of its value against USDT -wicking down to $0.0001, before recovering.
— Alex Krüger (@krugermacro) March 12, 2020
The initial drop was likely caused by panic selling which was experienced both in traditional and cryptocurrency markets. However, Chainlink got the worst-case scenario of the bloodbath. Luckily, it recovered to reasonable levels compared to other assets that dropped in that period.
Because of the fears of the COVID-19 virus, stocks are plummeting globally. The effects of the panic are visible in the prices of assets in both traditional and cryptocurrency markets. It is expected that economies will contract following the pandemic whose effects are global as the crisis potentiates the cracks that were preexistent in the global economy.
Established cryptocurrencies such as Bitcoin are not spared from this crisis. As assets which were thought of as stores of value, cryptocurrencies have failed to live up to their reputation as their prices are also affected by prevailing market conditions. Bitcoin, for example, is currently trading at $5,300, a long way from the $10,000+ it would likely be trading if the market viewed it as a store of value.
The market uncertainty brings into question the reach of cryptocurrencies globally and questions the belief the world market has in cryptocurrencies. Clearly, there is more that must be done by the crypto industry to improve its status globally.
Featured Image Source: CNBC
Sal Miah is the senior editor at Blockspectator News and is a regular contributor to a variety of cryptocurrency news websites and projects. He has written hundreds of articles on numerous topics related to blockchain and also has a special interest in financial markets. Contact him directly at firstname.lastname@example.org