Chinese New Year
The Chinese New Year is considered the most important Chinese holiday of all. In the lunisolar calendar, the year of the “metal rat” begins and the Chinese economy slows down drastically. This might not be the first time that this has had a negative impact on the price of Bitcoin. We take a look at the current events in cryptospace.
Chinese New Year is overshadowed
This year, the Chinese New Year celebrations are overshadowed by the rampant coronavirus. Over 1000 people have already been infected with the virus and cities like Wuhan are under quarantine. Yesterday the media reported the first cases in Bordeaux and Paris, the situation is serious.
Effects on Bitcoin
Many experts believe that the Chinese New Year could have a direct influence on the Bitcoin price. The values of the past years support this theory. Slumps of up to 50% shook the BTC price several times in January. In addition, the fear of the corona virus could spread to all financial markets.
Bitcoin price in detail
On Saturday, the Bitcoin is priced at around 8340 USD. The bounce on the 200-day line sent the #1 crypto currency into the support zone of about 8400 USD. Some experts quickly predicted a fall below the important 8000 USD mark. However, this was not confirmed. With a daily minus of approx. 1.68%, the BTC only recorded a small damper on Saturday, which should not cause any unrest. The market capitalization also dropped slightly (approx. USD 229 billion), but a direct influence of the Chinese holiday cannot be determined here either.
The Bitcoin has been struggling for over 48 hours to reach the support zone at 8400 USD. Should it lose it, a fall to the 8200 USD mark would follow. Further down (around 8000 USD) is the important 100-day average. On the upside, the Bitcoin would first have to break through the resistance at 8600 USD in order to make a new attempt to reach the 9000 USD level.
Altcoins follow the boss
A Bitcoin dominance index of 66,1 % implies the current behaviour of most of the Altcoins. These follow the Bitcoin at every turn. In the Top 30 no coin can show an upward trend on Saturday. The upcoming Bitcoin Halving Event could even further fuel the BTC dominance.
Julius Baer enters the Bitcoin business
The largest Swiss private bank Julius Baer dares to enter the crypto-business. The company announced this in a press release: “We at Julius Baer are convinced that digital assets are becoming a legitimate and sustainable asset class in an investor’s portfolio. “The announcement may come as a surprise to some investors. In an interview with HZ, Patrik Lang, Head of Equity & Global Investment Strategies at Julius Baer last year, commented as follows: “Since its peak in December 2017, the Bitcoin price has fallen by around 80 percent. The euphoria about crypto currencies in general and Bitcoin in particular has been severely dampened last year. The same applies to the blockchain issue. […] In our opinion, technological, economic and regulatory challenges must first be overcome before cryptocurrencies can achieve the status of a secure payment system and store of value.