Bitcoin with starting difficulties into the new week
The No.1 crypto currency is at the beginning of a turbulent week after reaching the 1000 day high. While the coronavirus new infections in many countries are rising to record levels, the world is feverishly awaiting the upcoming US elections. Even in the run-up to the elections, the tug-of-war over US aid packages is causing unrest on Wall Street. Quite a few experts predict a stronger devaluation of the US dollar. But how important are current events for “digital gold”?
Escape to safe havens?
A few hours before the U.S. election, investors are eagerly speculating about possible election outcomes and the resulting consequences for the economy. Should US President Donald Trump be re-elected in the night of November 4, many investors expect lower taxes and a limitation of the stimuli. Should rival Joe Biden win the election and the Democrats achieve a majority in the Senate, a tax increase could boost the price of gold and BTC enormously. The coronavirus infection is already flushing more and more investors into “safe havens”, which provide security through a low inflation rate and limited reserves.
Trend towards digital currencies
As digital currencies become more and more popular, the European Central Bank (ECB) seems to be pushing the introduction of the digital euro. On Twitter, ECB boss Christine Legarde recently launched a survey targeting EU citizens. According to the survey, the “digital euro” is intended to act as a reliable and fast means of payment at EU level. Legarde comments on the plans as follows: “We’ve started exploring the possibility of launching a digital euro. As Europeans are increasingly turning to digital in the ways they spend, save and invest, we should be prepared to issue a digital euro, if needed.”
Current Bitcoin exchange rate
At the time of writing, the first mover is quoted at 13508 USD, which represents a daily loss of – 2.26%. Despite the price correction, we can observe a continuing isolation from the traditional markets. On Monday the S&P 500 starts the day with a plus of 1.10 %, the Dow Jones Industrial Average climbs 1.70 % northwards. After the PayPal rally, the leading crypto currency was able to break away from the major stock indices. As a result, the price is subject to more severe fluctuations, volatility is back and risk-averse traders fear turbulent outliers.
These limits are important
From a bullish perspective, the next resistances are now at USD 13600 and USD 13800, before the important USD 14000 barrier piles up behind them. On the downside, the next supports are at $13500, $13300 and $13190. On Monday we can observe a Bitcoin Dominance Index of 63.4%, the current BTC Market Cap is about USD 250 billion.
A look at the Altcoins
Ethereum (- 0.83%) positioned itself just below the important USD 400 mark on Monday. Currently, the Smart Contract-Coin stands at a price of 386.10 USD. In general, only a few coins can show an upward trend today. Binance Coin NBB (+ 0.53 %), NEO (+ 4.80 %) and NEM (+ 1.65 %) are among the exceptions.