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Even after the announcements of massive stimulus by the U.S. Federal Reserve, the ECB, and several other central banks, the equity markets are still struggling to launch a sharp recovery from the recent lows. This shows that traders are not confident that the equity markets have bottomed out and possibly investors are slowly losing hope that the central banks can rescue them from any crisis.
Bitcoin (BTC) is up 1 percent in the past 24 hours of trading, currently changing hands at $6,224 as of 19:00 UTC. The world’s largest cryptocurrency by market capitalization may be trending below its 10-day moving average in price, but it’s still above its 50-day average, the signal of a continued upward trend.
On Coinbase, prices were as high as $6,993 on the U.S. exchange over the past 24 hours. That’s an 80 percent appreciation from its lows of $3,845 on March 12, which was hit, in part, by liquidations on BitMEX coronavirus-related news.
BTC/USD witnessed one of its best days yet since the massive selloff on Mar. 12 which saw the price of the top crypto tank to the $3,600 USD level. Currently trading at an average of $6,610 USD across top exchanges, this represents over 69% growth since hitting a year low last week and an impressive 49% so far during the week.
Over the past few days, Bitcoin saw some bullish price action for the first time in weeks. This rally took the asset as high as $6,900, up 80% from the $3,800 bottom seen last week and up 28% from the $5,400 baseline. Unfortunately, it ended abruptly just hours ago, with the cryptocurrency seeing a strong rejection at $6,900 to fall as low as $5,700.
According to a prominent analyst, this rejection is a likely precursor to further pain for this market in the coming week.
While the covid-19 outbreak has caused economic calamity, cryptocurrencies have regained some of the losses that devastated digital currency markets on March 12. A recent report published by the researchers at Coin Metrics notes the “crypto asset sell-off was driven by short-term holders.” Further, an analyst at Unchained Capital agreed with Coin Metrics’ findings and wrote that “a majority of the volatility came from UTXOs 6 months old or younger.”
Bitcoin IRA is a company that allows individuals with retirement accounts to invest in digital assets such as bitcoin, Ethereum and bitcoin cash. While the notion of investing one’s retirement funds into digital assets can be a bit scary given their volatility – this is, after all, the money you’re going to live on during your old age – Bitcoin IRA has worked hard to ensure users remain interested and that crypto investments become more mainstream.
Unprecedented economic measures by governments across the world appear to have had little result as a brief respite for bitcoin gave way to another fall while oil has fallen to $25 a barrel, an all time low, amid government restrictions on travel within countries and between countries.
Dow Jones has dropped a further 3.20% at the time of writing as California goes into a near total lockdown with a police department there apparently planing to use Chinese drones for surveillance of public gatherings.
2020 has already left a mark on the cryptocurrency industry for various reasons, be it Bitcoin‘s initial bullish movement or the recent fall. COVID-19 changed the path.
Will Bitcoin continue to be correlated with traditional risk assets?
The King coin as of March 20, recorded a low with S&P500. The 1-Month realized correlation for BTC–S&P 500 which was at 25.52% on March 9, dropped to -46.9% on March 13. It is currently at a correlation of -55.1%.
The top three cryptocurrencies recorded remarkable price increases during this period, which immensely boosted the entire market valuation. At the time of writing, Bitcoin, Ethereum, and XRP prices were up by 25%, 26%, and 19% respectively in the last 24 hours.
Bitcoin, which accounts for 65% of the entire crypto market cap, grew by about $1,600 from its opening price of around $5,200 on March 19 to reach a high in the $6,800 region.
Ethereum followed a similar pattern rising from around $115 to peak in the $150 region over the two days. XRP grew from the $0.14 level and reached a high of $0.17 in the same period.
The outlet reviewed a note from the firm in which Adaptive revealed it would be “clos[ing] operations and return[ing] the remaining funds to investors,” revealing that the “infrastructural insufficiencies” on some exchanges didn’t allow them to execute Bitcoin trades correctly amid the breakdown:
Governments are now considering tracking online user data as a way to fight the rapid spread of COVID-19. As a result, the question of personal data privacy is increasingly becoming a subject of discussion within the crypto community.
On March 17, the Washington Post reported that the United States government was in talks with internet giants like Facebook and Google about using smartphone location data to combat COVID-19. One highlighted tactic includes tracking whether people are self-isolating in a way that successfully stems the outbreak, as has already occured in Israel, China, and Iran.
Citing low liquidity, Bitfinex has announced that it will soon delist over 87 trading pairs. This move reflects the increasing competition within the altcoin space, and could prompt considerably more market volatility.
On this day her committee, the Senate Health Committee, hosted an all-senators private briefing from certain administration officials. These include the head of the National Institute of Allergy and Infectious Diseases, CDC Director Anthony Fauci.
Per the official release, “senators will have the opportunity to hear directly from senior government health officials regarding what we know about the virus so far, and how our country is prepared to respond as the situation develops.”
- CryptoCompare reported a recent peak of 11,000 trades per second and 6 million per hour.
- Bitcoin has risen nearly $2,000 since experiencing its sub-$5,000 low last week.
- The stage is set for BTC to prove itself as a “safe haven” during the coronavirus pandemic, says CryptoCompare CEO.