Bitcoin price came under the cosh on February 25, falling as much as 4.6 percent intraday, as the impact of the coronavirus outbreak continued to haunt the global economy.
Coronavirus has triggered a worldwide panic, claiming over 2,600 victims.
Bitcoin managed to recoup some losses and ended the session at $9,496.50, down 2.61 percent.
Another reason for the fall in Bitcoin prices could be Warren Buffett's comments where he reaffirmed his aversion to cryptocurrencies.
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
In an interview with CNBC, the 89-year-old billionaire investor said he doesn't own any cryptocurrency and “never will.”
Buffett has been a long-time critic of the digital coin, terming it “probably rat poison squared,” "a mirage," "not a currency", and "tulips" in various interviews.
The massive price drop is the biggest since last week's carnage which wiped off 5.32 percent, dragging the price below $10,000 levels.
Bitcoin has already fallen 3 percent or more in seven sessions during the calendar year. However, the cryptocurrency is still the top-performing asset class of 2020, rallying 31.5 percent year-to-date. It has managed to outclass the likes of gold, crude, Nifty and rupee.
The latest price drop has once again brought in question the safe-have appeal of the cryptocurrency which was seemingly showing behavioural patterns similar to gold earlier this year.Contrary to Bitcoin's fall, traditional safe-haven assets generated positive returns on Monday. International Gold reached a fresh seven-year high and tested $1,689 per troy ounce. Silver also tested a high of $18.93 per troy ounce.