February Gains Disappear as Bitcoin Drops Below $9k
Crossing below the $9,000 price level is a new low for February 2020. Bitcoin has not traded below the $9,000 threshold since January 27, when it began a march to new highs in the $10,500 range.
Bitcoin is a cryptocurrency which isn’t managed by a bank or agency but in which transactions are recorded in the blockchain that is public and contains records of each and every transaction that takes place. The cryptocurrency is traded by individuals with cryptographic keys that act as wallets. Bitcoin was first invented in 2009 by an anonymous founder known as Satoshi Nakamoto. Bitcoins are moved in blocks every 10 minutes on a decentralized ledger that connects blocks into a coherent chain dating back to the first genesis block. It was originally described as a peer-to-peer electronic cash but the technology has evolved to emphasize being a settlement layer rather than a payment network. This has left integrated second layer solutions, like Lightning Network, to prioritize that use case. It has remained the largest cryptocurrency by market cap.Bitcoin 101
The spreading coronavirus sowed a new bout of fear among investors, triggering a stock market sell-off and flight to safe-haven assets like gold and U.S. Treasury bonds.
Bitcoin's recovery from four-week lows could be extended to $9,000. However, the risk of deeper declines will persist as long as prices are below $9,400.
The cryptocurrency risks ending the second month on a negative note for the first time in years and could suffer deeper declines in the short-term.
The crypto markets were shaken Wednesday amid a flurry of selling that saw more than $190 million worth of longs and shorts liquidated on BitMEX.
Square reported bitcoin revenues of $178 million between Nov. 1 and Dec. 31, 2019, with profits of $3 million, up 50 percent over the prior two quarters.