Bitcoin under 8000 USD
The cryptos start the new week with serious losses. The Bitcoin loses a whopping 10% and the old coins also find themselves in a new crisis. The corona virus seems to make no stop at the crypto market and worried investors are looking for a “safe haven”. We take a look at the most important events.
Bitcoin continues to fall
The decline of the weekend continues today. The “digital gold” is falling by about 10%. At the time of this article, the BTC price is at a value of 7824 USD. In the past 48 hours, Bitcoin has thus suffered a price loss of over 1500 USD. Any figures illustrate the high volatility and instability at the same time. Now, investors fear that the price could fall even further in the coming hours. The premature bottom is now the USD 7600 mark. This is a level last touched by the #1 crypto currency in January. The next resistance level is the USD 7900 area. However, there is much to suggest that the bears are dictating the market at the moment.
Traditional markets collapse
It is devastating news from the economy. The DAX loses all of its gains from the previous year and falls by 7.5% (10670 points), the S&P 500 is down 7% and on Wall Street trading is interrupted in places. In short, the coronavirus is causing a tangible crisis and investors are talking about a “black Monday”. The oil industry is being hit even harder.
Oil price crashes
The price of oil has fallen by 30%, the biggest drop since 1991, triggered by the ongoing dispute between Russia and the oil-exporting countries (Opec). Last Friday, Russia already decided against a cutback in oil production. Oil trading also had to be temporarily suspended on Monday. The explosive mixture of “price war” and the consequences of the coronavirus caused the price to collapse.
What’s next for the crypto currencies
The current crisis shows that Bitcoin cannot fulfil its role as a “safe haven” at the present time. After new negative headlines around the Plus Token Scam, the price already shot down by a whopping 7% yesterday, and the slump in the traditional markets sealed the downswing for now. Now a fall below the USD 7000 mark is not unlikely. Total market capitalization has fallen dramatically in recent hours (approx. USD 224 billion). Only the BTC Dominance Index is rising.
Losing old coins
All Altcoins share a market share of only 36,4 %. This results in the consequences of the current crash: the Bitcoin is falling, the Altcoins are falling lower. Ethereum is racing straight towards the 200 USD mark with a daily loss of about 10%. At the moment, the price is at around 201 USD and it is a matter of time before the important support area breaks. The best known Bitcoin Forks are suffering even more. Bitcoin Cash (approx. -15%), Bitcoin SV (approx. -12%) and Litecoin (approx. -15%) are rattling unchecked towards the south. UNUS SED LEO is the only coin that can hold its ground and is recording an upward trend of approx. 1 %.