The Bitcoin looks back on the worst week in about 7 years. The coronavirus is plunging the traditional markets and the global economy into a tangible crisis. We take a look at current events.
Bitcoin with mega slump
When Bitcoin was trading at around USD 9000 a week ago, experts argued about possible effects around the corona virus. Quite a few experts emphasized the gold-like properties of Bitcoin and speculated that the magical USD 10,000 mark would soon be broken. A crisis-proof store of value, which has earned itself a reputation as a “safe haven”, could also defy this crisis and provide an antipole to current developments. No chance! One week later, traders are fearing for the loss of the 5000 USD trend line and a price slump of about 45% is on the books.
Chronicle of a crash
Black Monday will probably go down in history as a black day. The oil price started the new week with a minus of about 30 %, on Wall Street trading was temporarily suspended and the DAX lost all its gains from the previous year. The Bitcoin price also reacted to the negative headlines with a violent dump. But this did not mark the end of the story. On Thursday, the Down Jones Industrial recorded the worst slump in 33 years. The No.1 crypto currency fell to a low of 4150 USD and panic dominated the markets – virtually without exception.
Bitcoin rate today
On Sunday evening there is hope in the crypto space. The Bitcoin was able to recover from the worst sales over the weekend and is now marching towards resistance at 6000 USD. The support area at 5000 USD held up in the most important phase. Thus, a pullback to 4200 USD was only possible. From a bearish perspective, the focus could shift back to this area on Monday. However, one should first look at the weekly start of the traditional markets.
Market capitalization in view
Panicked investors withdrew over $100 billion from the crypto market in the past 7 days. The FUD (Fear, Uncertainty and Doubt) showed itself from its ugliest side and the bears scented their chance. At the time of writing, the total market capitalization is around USD 163 billion. Of this 64.5 % is invested in Bitcoin. All Altcoins share a market share of 35.5 %.
View of the Altcoins
It would be premature and wrong to speak of a recovery of the Altcoins. The enormous losses of the past few days are still being felt. Ethereum is hovering above the USD 130 mark with a daily gain of around 4% and Ripple is trading at USD 0.16 (+7%). Slight price gains in the single-digit percentage range are only a small consolation on Sunday. The coming week could bring trend-setting news. The world is looking at the developments surrounding the coronavirus pandemic. Not only the economy but also the welfare of the world community depends on it.