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The fact that Bitcoin (BTC) was born from a financial crisis but has yet to experience one raises the fear that the asset may perform poorly as traditional markets across the globe crumble.
These fears are clearly weighing on investor sentiment and with the May 2020 halving event fast approaching many are wondering if the long-expected bull market, supposedly a byproduct of the Bitcoin halving, will be negatively impacted by the current downturn in traditional markets.
Bitcoin price continues to look bearish, yet activity and investing interest continues to grow. Analysts are optimistic about the market recovering continuing, but when will the bulls return?
By contrast, some are claiming that this latest bitcoin maneuver has little to do with the coronavirus but is rather in anticipation of the big halving that’s scheduled to occur this coming May. They claim that bitcoin is likely to behave in a much more volatile manner over the next two months prior to the event occurring.
One such person is Mostafa Al-Mashita of the Canadian crypto enterprise Secure Digital Markets. In a statement, he explains:
The crypto market hasn’t fared too well over the past day or two. After peaking at $9,200 in a dramatic fashion, Bitcoin retraced under $8,200 on Sunday, catching many traders off guard, as they were expecting the leading cryptocurrency to continue higher.
Though, a prominent analyst, Jacob Canfield, recently shed light on three crucial catalysts which likely attributed to the rapid sell-off in the price of cryptocurrencies across the board.
Bitcoin really hasn’t done too well over the past 24 hours. After peaking at $9,200, the leading cryptocurrency has fallen lower and lower, reaching a price as low as $8,150 (the lowest in literal weeks) on Sunday.
Despite this, there remain some prominent analysts that suggest BTC is in the midst of forming a local bottom at $8,200. Here’s why they think this optimistic hope could become the truth.
SEC’s track record with regard to Bitcoin ETFs isn’t too promising for investors who are looking to gain exposure to cryptoassets via such investment vehicles. With high standards set by the Securities and Exchange Commission (SEC) and strict regulatory policies governing the approval process for Bitcoin ETFs, there have been quite a few ETF proposals that were rejected in the last two years.
According to the Bitcoin Obituary Page, Bitcoin died 379 times between 2010-2019 of an astonishing array of causes. The number is undoubtedly understated since it is based on a limited sample of obituaries. Despite the glee with which the corpses of Bitcoin are contemplated, however, cryptocurrency thrives because it continues to fill the human need for privacy and financial control.
As reported by Ethereum World News just a few hours ago, Bitcoin and the rest of the crypto market haven’t been doing too well. In fact, Ethereum, along with practically all other altcoins, has collapsed over 10% (compared to BTC’s relatively measly 7% loss or so) in the past day alone, marking a brutal loss for bulls. The price of the second-largest cryptocurrency has fared so well that earlier today, it hit $203 — 30% off the $290 highs seen in the middle of February and the lowest price the cryptocurrency has seen in over 30 days.
On average, these coins are down 10%. BNB and Kyber Network (KNC) are both down 10%. OKEx coin (OKB) is down 8% in the past trading day.
Activity is a mark of demand and demand instead leads to higher prices. That’s how market forces operate and that is ideally how it is. But it appears as if traders are fleeing to safety. The flight to safety has seen stable coins like Tether (USDT) and USDC trade at a premium.
Litecoin’s price has promptly followed Bitcoin. This has led the coin to go from $63 to $58 in a couple of hours. Like Bitcoin’s longs, Litecoin longs [27.5 LTC] have been liquidated due to this.
At press time, however, the price seems to be recovering and probably heading up North.
With a solid performance over the last two quarters, Tesla has sent shivers to its competitors in the automobile industry. In just the last six months, Tesla Inc (NASDAQ: TSLA) stock has jumped over 200% making it the second-largest global automobile after Toyota Motor Corp (TYO: 7203). And probably it could be a good reason to buy Tesla (TSLA) stock these days.
Twitter has been home to the crypto space for a while now. It’s CEO Jack Dorsey loves Bitcoin and Everyone knows this. The recent issues he has been facing at Twitter could be a result of him being a cryptocurrency enthusiast. Twitter mentions have allegedly driven crypto prices up or down.
The finance community wonders if Twitter could be driving prices of Bitcoin, Ethereum, and XRP. Where there’s smoke there’s fire, it may have some form of influence over the markets but may not be driving prices.
According to a Forbes report published on March 7, 2020, aircraft manufacturing giant Boeing has added more than $1 billion in excess airplane parts to GoDirect Trade, a blockchain-powered platform developed by Honeywell to track the origin of the parts and ensure they comply with the laid down safety standards.
- Crypto-powered privacy-centered web browser Brave has surpassed 4 million in daily active users.
- Brave allows users to contribute to their favorite websites with Basic Attention Token instead of watching ads.