As after any major Bitcoin (BTC) crash, analysts are now arguing over what could potentially have been the cause. 

But this time, the answer is simple, at least according to noted Bitcoin bull and Galaxy Digital CEO Mike Novogratz. In a tweet on March 13, Novogratz said:

“[Bitcoin] was always a confidence game. All crypto is. And it appears global confidence in just about anything has evaporated.”

Pandemic panic

The coronavirus pandemic has shaken global markets to their core, and disputes between oil-producing nations have only added to the misery. As investors have been frantically liquidating their assets, even those considered safe havens have not been immune.

While Bitcoin was suffering its 40% price crash yesterday, gold also took a beating, although not quite to the same extent.

Rebuilding confidence

So rather than dwelling on losses, Novogratz suggests that the real question is how to bring confidence back to Bitcoin.

As Cointelegraph reported, Bitcoin price briefly dropped to a new yearly low of $3,782 at one point yesterday, before promptly rebounding back above $5,200.

So confidence is not gone completely, and some will still try to profit from Bitcoin’s extreme volatility at this time. However, for the markets to fully regain confidence, investors may have to wait until the current panic blows over.