Bitcoin is performing better than traditional exchanges

Since Sunday, the price of Bitcoin has dropped to around $ 7,800, and yesterday fluctuated between $ 7,700 and $ 7,960. As a percentage, this was a decrease of about 5%, which means that Bitcoin is performing better than traditional exchanges.

The fear of coronavirus continues to affect the financial markets – the Dow index fell by 7% and the S&P 500 index by more than 5%.

As for crypto markets, some analysts speculated that the evolution of Bitcoin was influenced by both the epidemic and the fact that over 13,000 BTCs were sold by the operators of the PlusToken scam.

However, James Hapak, digital asset manager, believes:

“Bitcoin decline is not related to Covid or PlusToken. These are mini-whales taking orders from large institutions to liquidate BTC bought with $ 9,000 and $ 10,000. This has been happening for months. “

The BitMEX platform has indeed registered long contracts worth $ 190 million. These coincided with large volumes on Coinbase, with over 6,300 transactions over a two-hour period.

Bitcoin is performing better than stock exchanges according to S2F

Bitcoin bulls point out that the evolution of the last few days is not a cause for concern. The PlanB analyst, for example, pointed out that the latest flash crash falls within the projected limits of its stock-to-flow (S2F) model.

#bitcoin S2F chart adjusted for today’s “crash” … nothing really happened, btc still spot on S2F track pic.twitter.com/7bIaZpWgLB

– PlanB (@ 100trillionUSD) March 8, 2020

The S2F model is a long-term prediction that takes data from previous Bitcoin halving events. The chart calculates a range that prices will be able to track in the future.

From a macro perspective, the short-term volatility of the Bitcoin price can be seen as irrelevant. Despite the market panic, the long-term bullish trend of Bitcoin remains intact.

The current situation can be considered last chance to buy Bitcoin at a great price before the next half of the block rewards. Plan B’s S2F model sets the price for Bitcoin after halving at about $ 55,000.