Bitcoin has again begun moving lower, following broader financial markets down as investors count the cost of the spreading coronavirus.
The bitcoin price, which had found a temporary floor of just over $5,000 per bitcoin late last week, sunk to lows of $4,787 on the Luxembourg-based Bitstamp exchange early this morning.
Bitcoin's move lower comes as the U.S. Federal Reserve, working with the U.K., Japan, the eurozone, Canada, and Switzerland, tried to shore up financial markets with massive stimulus—but many feel the central banks haven't gone far enough.
The bitcoin price surged higher when the Fed yesterday announced it would cut interest rates to a target range of 0% to 0.25% and said it would it begin quantitative easing to pump cash directly into the economy.
Bitcoin briefly jumped to almost $6,000 per bitcoin before falling back almost immediately.
Many in the bitcoin and cryptocurrency community have argued the Fed's bond-buying and interest rate cuts highlight bitcoin's superiority to traditional markets.
"The Fed just cut rates to zero and entered into QE again. Bitcoin was built for this moment," said Dan Held, U.S.-based bitcoin and crypto exchange Kraken's head of businesses development, via Twitter.
"Bitcoin is a hedge to this," cofounder of the U.S.-based Gemini bitcoin and crypto exchange, Tyler Winklevoss, said via Twitter.
"Bitcoin doesn’t have a 'limit down' or 'circuit breakers' because it is a real market with a real clearing price," bitcoin and cryptocurrency expert and cofounder of the Satoshi Nakamoto Institute Pierre Rochard tweeted.
"Stocks and bonds are not real markets, they are Potemkin villages, their prices are highly manipulated and political."
The bitcoin price, which had found a temporary floor of […]