Bitcoin follows traditional markets
For the past few days we have seen a rising correlation between the major stock indices and the No.1 crypto currency. The same applies to the past 24 hours. While the Corona virus continues to drive the global economy into crisis, Bitcoin Halving could be a liberating blow for the cryptos. We take a look at the current situation in the market.
Bitcoin price in detail
At the time of this article, the BTC is quoted at USD 6724, which corresponds to a daily loss of approximately 3 %. The 24-hour volume of around USD 32 billion illustrates the wait-and-see attitude of investors. The focus is currently on the traditional markets, which are expected to record losses on Wednesday.
Stock markets with losses
The Down Jones Industrial Average falls by just under 2% on Wednesday, the Nikkei maintains its level and the Dax plummets by a whopping 3.90%. After US President Trump announced a stop to payments to the WHO, the minds of traders were heated. The prolongation of curfew or contact ban is hitting the economy of many countries enormously and an end of the pandemic is not yet in sight. The crisis is also increasingly becoming a psychological test. The world is looking to the major stock markets in these times. How is Wall Street reacting? What will the rescue packages achieve? And when will the situation change? These are the questions that are currently at the forefront. So it’s no wonder that the crypto market can only follow with a market cap of USD 193 billion as a marginal market. But this could soon change.
Halving in less than 30 days
The third Bitcoin Halving Event is just around the corner. The halving of the Coin Rewards is considered the crypto highlight of 2020, and the third Bitcoin Halving Event lowers the inflation rate of Bitcoin to a value of approximately 2%. After that, only 900 Bitcoin units are mined daily. Today, messages circulated through the crypto space reporting that the hash rate is already back at the level of early March. Compared to other markets, Bitcoin is benefiting from the high volatility in this crisis. On the one hand, this can lead to fast downtrends and massively push the price down. On the other hand, we see fast pullbacks and recovery phases.
These limits are important now
After falling below the USD 6800 mark, the BTC is now once again running against the well-known resistance. For weeks, the No.1 crypto currency has remained in the range between USD 6600 and USD 7300 and the USD 6800 trend line is the linchpin. From a bearish perspective, the line at 6600 USD now forms the next resistance.
Altcoins follow BTC
The Altcoins are dependent on digital gold. Independent price outbreaks are now an absolute rarity and the upcoming BTC Halving Event should fuel this constellation even further.