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Several analysts have suggested that the current crisis is likely to be far worse than the previous financial crisis, which led to the birth of Bitcoin. Gemini co-founder Cameron Winklevoss said that the current coronavirus “pandemic will be an inflection point for Bitcoin and the Metaverse.” For this reason Winklevoss has advised his followers to “hodl” their Bitcoin holdings.
After an extremely positive start to the year, Bitcoin and the rest of cryptocurrencies suffered a catastrophic collapse as the coronavirus panic began to spiral out of control and impact all aspects of the economy and financial markets.
The first-ever cryptocurrency fell to below $4,000, bouncing at $3,800 and within a month had nearly doubled, returning to above $7,000 this past week.
An important metric that informs about the market conditions is the Bid/Ask Spread. During such turbulent times, this spread often widens. Bitcoin was still considered to be a developing asset class and its normal bid-ask spread should be under 20 bps [1bps= 0.01%]. However, as per the data provided by Skew, the spread has been widening lately.
Bitcoin futures contracts for June on exchanges such as Kraken are trading around $6,750, which suggests traders are pricing in further downside. Such “backwardation” — where futures trade at a discount to the spot price — represents a shift from last week, when futures were trading at a premium.
“Futures and our own activity indicate that speculators expect to see lower prices in the short term,” said Maxine Boonen, CEO of over-the-counter (OTC) bitcoin liquidity provider B2C2. “One particular hedge fund sold us $20 million of bitcoin today and they have usually been right.”
- Bitcoin is slowly recovering higher after trading as low as $6,559 against the US Dollar.
- The bulls were able to push the price above the $6,750 and $6,800 level.
- There is a major bearish trend line forming with resistance near $7,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is likely to struggle near the 100 hourly simple moving average and $6,960.
Worried by the damage to the American oil companies caused by a price war that had resulted in U.S. crude oil prices falling below $20 a barrel (close to their 18-year lows) on March 30, President Trump managed to put sufficient pressure on Saudi Arabia during the past two weeks to help the OPEC+ alliance and the Group of Twenty nations (aka “G20”) reach a historic oil production cut deal on Sunday (April 12) evening following an emergency video conference:
- Tether prints another 120 million USDT to its inventory as the total amount of USDT issued now equals $6,803,667,043.90.
- Reportedly, the global demand for the US Dollar is manifesting itself via Tether, as Chinese crypto exchanges dominate deposits.
USDT (Tether) total market capitalization is now up more than 40% since March. The trend has been consistent with other stablecoins (such as GUSD, TUSD, PAX, DAI, USDC, HUSD BUSD) as well.
One grim byproduct of this recent selloff is that Ethereum has declined beneath a critical ascending trendline that had been guiding it higher in the time following its capitulatory plunge to the sub-$100 region on March 12th.
Another popular trader on Twitter spoke about this trendline in a recent tweet, offering a chart showing that a sustained bout of trading below this level could lead it to drop another 10% before it finds some slight support.
Ripple has always touted itself as the successor to the old payment systems used by remittance firms to conduct cross-border payments. The firm’s distributed ledger blockchain-based solution has been adopted by popular remittance firms like MoneyGram after Ripple invested approximately $50 million in the company.
- Binance is adding Bitcoin options trading to its mobile platform.
- Options will soon be available for Binance’s desktop version and may include other coins in the future.
- The move signals an aggressive push from Binance to capture even greater market share.
“There’s a long-term debt cycle. It goes on for 50 to 75 years. This is when you begin a new type of money and a new type of credit. That began in 1945 – the new world order – the end of WWII, the end of the Bretton Woods monetary system, created a new monetary system in 1945.
They wiped out pretty much the old money and began a new – that’s the new world order – the American world order. And, still, 70% of the money and credit that exist in the economy is running by dollars. What you have traditionally is the breakdown.”
A bear market is very harsh and brutal once you come across it while trading. The economy in this type of market is declining and prices are going down. Commonly known as” bearish”. A bear market is caused by several factors. It includes a drop in consumer confidence, an increase in unemployment, and a lack of available incomes, declining to cooperate profits or tight Federal Reserve Policies. These unbearable conditions can be either long or short term. Then, how can crypto traders still make a profit?
The Block analyzed app store data for 2020
We found that Coinbase and Binance mobile apps dominate the rankings for cryptocurrency apps
We also found that the average rankings of cryptocurrency apps in our data set saw an insignificant uptick following the market’s ‘Black Thursday’ event.
It is no surprise that social media apply censorship and de-platforming. Such policies are well-known to the blockchain community which regularly experiences content banning on many popular social sites. Harsh policies affect social groups based on political beliefs both left- and right-wing. The COVID-19 epidemic has also triggered indiscriminate bans on content mentioning “coronavirus”. Along with misinformation about the virus’s spread and false treatments, educational and socially significant content is also affected.