ups and downs
At the start of the week, Bitcoin is once again battling against the important 5000 USD border. After the enormous losses in the morning hours, the No.1 crypto currency manages a pullback. The next few hours could point the direction for the coming days. Meanwhile, the coronavirus continues to spread and the traditional markets are experiencing another setback. We take a look at the main issues in the crypto space.
Bitcoin course in detail
At the time of writing, the BTC is just above the important USD 5000 mark (current price: USD 5013). A 24-hour volume of just under USD 50 billion implies investor interest. Many investors have been lurking in wait to see how things will go from here. A daily loss of about 6% sounds bad at first, but it could have been much worse.
Traditional markets collapse
Neither the rescue package of the ECB nor the emergency measures of the FED can contain the panic of investors these days. The coronavirus is sweeping across the globe and countless nations are struggling with the consequences. Curfews, assembly bans and other measures are supposed to slow down its spread. To what extent these methods will be effective remains unclear at first. Wall Street had to suspend trading for the second time on Monday, the DAX is falling back to 2016 levels and the oil shock is omnipresent. In short: The stock markets are in a deep crisis.
Bitcoin reacts to the devastating headlines from the global economy with enormous price losses. In the meantime, several indicators even spoke for a fall below the 4000 USD mark. For investors, this results in a difficult market situation. Nobody knows when the decline will find a bottom. On the other hand, the current purchase prices are attracting risk-affine traders. The volatility makes the whole thing almost unpredictable. The crypto space resembles the Wild West.
Altcoins still powerless
A Bitcoin Dominance Index of 64 % reflects the current market situation. Investors are concentrating on Bitcoin and the Altcoins have their hands tied. Ethereum settles at the 100 USD mark and Ripple falls back to a price of approx. 0.14 USD with a daily loss of just under 7%. The Bitcoin Forks are hit even harder in places. However, any price fluctuations should not really frighten experienced crypto traders, since nothing has changed in the fundamentals.