Bitcoin wipes out February gains amid selling pressure

Image: Reuters

Bitcoin continued to crumble under selling pressure, falling below $9,000 levels for the first time since January 28.

The world's largest cryptocurrency plunged 5.55 percent on February 26 to settle at $8,800. It was again trading in the negative territory at the time of publishing this copy.

The massive sell-off has put Bitcoin in bear territory and only a close above $10,028 (Monday's high) could turn the tide in favour of bulls, experts suggest.

The plunge comes in the backdrop of a slowing global economy that has been crippled by coronavirus, COVID-19, which is slowly turning into a global pandemic.

The deadly virus has now spread to over 33 countries claiming over 2,700 lives.

According to analysts, the plunge also denounces the safe-haven appeal of the digital coin. Traditional safe-haven bets such as gold have remained steady amid rising coronavirus concerns. The yellow metal has held above $1,600 level in the international market and was trading with marginal gains on the Multi Commodity Exchange on February 27.

The fact that BTC could not rally in the face of the advance by Gold prices and drop in equities was a "tell" pic.twitter.com/GpCiXjB5cD

— Peter Brandt (@PeterLBrandt) February 26, 2020