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Bitcoin (BTC) hodlers deserve a pat on the back for making it through this last week, as BTC witnessed its largest sell-off in history, in terms of USD value, causing the leading digital asset to shed $70bn of its market cap in a single 24-hour period.
I shudder to think about the fortunes that were lost, but as we are left reeling in the aftermath of this selloff, a question remains. Could anyone have seen this coming? And has the outlook for Bitcoin now changed?
These are two questions I will attempt to address in today’s analysis.
However, the continued negative sentiments as a result of the spread of the CoronaVirus has put a block on Bitcoin’s path to the moon, sending the crypto’s price rolling South to the lows of $5,000 from a previous optimistic high of $10, 500. In a tweet, one technical analyst opined that the price will take a while to get back up. He explained what’s happening.
The Federal Reserve made an unexpected announcement at 5 PM U.S. Time Sunday afternoon. Along with another $700 billion immediate injections – $500 billion in treasuries and $200 billion in mortgage-back securities, the Fed is cutting the rate to zero.
Donald Trump fires all the guns he has at an early stage of the coronavirus battle: Following the past week’s cut of 0.5% just a week ago, the Fed had announced shortly before the Futures on Wall Street open, on an another aggressive rate cut to zero, valid from March 26, 2020.
Bitcoin [BTC] price closes the week on a negative note below the 200-Period Moving Average on a weekly scale. Moreover, economic panic due to the coronavirus seems to be getting worse as Fed announces extreme QE measures to address the emergency.
The funding rate on BitMEX exchange is now in the negative 0.3-0.4% range daily. These levels of short have never been seen before on the exchange. Even during the the bear markets of 2018.
Despite it being a weekend, volatility has persisted in the Bitcoin market. After falling as low as $5,000 today, the cryptocurrency spiked 15% in minutes, rallying to $5,950 from $5,150 in an hour’s time. Unfortunately, BTC was unable to hold its gains, seeing a strong rejection at $6,000 to fall to $5,400 as of the time of writing this.
As reported by NewsBTC, all analysts are keeping their eyes on the charts, as Bitcoin is on the verge of closing under the ever-important 200-week simple moving average for the first time ever.
The meme is real. That was the reaction across the world as Britain delivered a clear message: keep calm and carry on… we have a plan. UK’s health secretary said:
“We have a plan, based on the expertise of world-leading scientists. Herd immunity is not a part of it. That is a scientific concept, not a goal or a strategy. Our goal is to protect life from this virus, our strategy is to protect the most vulnerable and protect the NHS through contain, delay, research and mitigate.
Bitcoin’s cataclysmic sell-off slashed the top cryptocurrency’s value by over 50% from its 2020 high of $10,500. Some of the biggest figures in the crypto industry are sharing their two cents over the recent meltdown.
Tyler Winklevoss, co-founder and CEO of cryptocurrency exchange Gemini, says that Bitcoin has taken a lot of punches and is still standing.
- Ethereum is currently consolidating below the key $144 resistance area against the US Dollar.
- The price remains well supported on the downside near the lower end of the range at $110.
- There is a major bearish trend line forming with resistance near $140 on the hourly chart of ETH/USD (data feed via Kraken).
- Bitcoin price is also consolidating above the $4,800 and $5,000 support levels.
This week’s edition of This Week in Crypto comes directly from the underground bunker I’ve been hiding out in all along, known as “my mother’s basement” to my friends, and to the taxman as a “designated workspace.” The main news this week, both in crypto world and elsewhere, is that Coronavirus is officially a pandemic, according to the World Health Organization.
Stablecoins have seen massive volume and growth this month especially after the market carnage on March 12. Per usual, tether has been the king of stablecoins following the market downturn, but the 4.6 billion USDT wasn’t enough for all the liquidity needed to shield the storm. Other tokens pegged to the U.S. dollar like USDC, TUSD, and PAX have reaped the benefits as well and a few of them have joined the top trading pairs with BTC.
In a recent podcast, Joe Lallouz, CEO of Bison Trails and a founding member of Libra association, shared his thoughts on Libra’s launch and the promises made in the whitepaper.
Joe agreed on the idea of Libra creating financial inclusion but noted that it wasn’t different in terms of creating a better system for transmitting, transacting, moving, moving money around than what’s present today.
Following the sudden market crash for cryptocurrency, which saw the price of bitcoin dip below $4,000 in the worst single-day selloff in history, analysts on Twitter are beginning to turn bearish. While BTC was previously approaching $10,000 in anticipation of May’s halving event, the outlook for bitcoin is now being called into question.
Twitter analysts posted a combination of exacerbation and humor, with some in disbelief over quickly bitcoin lost gains built over the last year.
China has very bold and ambitious plans when it comes to blockchain technology. This week, the PBoC has unveiled its plan to invest just under $5 million in a blockchain-based trade finance platform.
Blockchain technology can transform the world as people know it today.
According to a blog post released by the exchange on March 13, Coinbase would immediately begin offering Bitcoin (BTC) transaction batching for its customers.
The move taken by Coinbase, which “requires no action from customers”, will allow single on-chain transactions of cryptocurrencies to be bundled into one. The exchange predicts this will reduce the load on the BTC network and the resulting fees customers pay for sending money.