Bitcoin with price gains
Bitcoin is holding above the important USD 5,000 mark and seems to be avoiding further losses for the time being. Meanwhile, the US government is thinking about helicopter money for American workers to boost the US economy. The world economy is hanging in the ropes. But what does this mean for the crypto market?
Bitcoin price in detail
At the time of this article, Bitcoin is quoted at 5293 USD. This value corresponds to a daily increase of a whopping 6%. The 24-hour volume is around USD 38.4 billion and the market cap is just under USD 97 billion. With a total market capitalization of approx. 161 billion USD, 64 % is invested in Bitcoin.
The next limits
Investors’ eyes continue to look towards the USD 5000 mark. This is the important psychological support area that protects the market from the bears. On the current rollercoaster ride, reliable chart analysis is impossible. The traditional markets have a direct influence on the crypto market in this crisis. Although Bitcoin could not live up to its reputation as a crisis-stable “Store of Value”, it could convince with other qualities in the coming weeks.
The “digital gold” knows no boundaries
Countless nations are closing their borders and the traditional markets are rushing south. If the current situation does not ease in the coming weeks, decentralization could take Bitcoin to a new level. The No.1 crypto currency can be transferred across national borders without any problems, there is no physical contact. Bitcoin is a global currency.
Cash as a carrier?
A few days ago we reported on drastic measures taken by the Chinese government. With a large-scale cash quarantine the banks disinfected used cash notes, which were subsequently sealed for 7-14 days. At the same time, Chinese money printers were running at full speed, and over 4 billion yuan were reprinted in a very short time. Many experts are of the opinion that coronavirus infection via cash is virtually impossible, whereas American researchers found that the pathogens survive for up to four hours on copper surfaces.
The Altcoins move along with
It was a relaxing day for you Altcoins. After the drastic sell-offs of the past few days, the alternative assets were able to enjoy decent price gains on Tuesday. Although these should only be a small consolation after the dramatic price slumps, things could have been worse. Ethereum is now trading at around 115 USD, Ripple is jumping back to 0.15 USD and the Bitcoin Forks are recovering from the strains of the past few days.
What’s the next step?
If the bears push the BTC below the important USD 5000 mark in the coming hours, the No.1 crypto currency would run unchecked towards the support area at USD 4200. This pattern could already be observed several times during the previous week. The next supports will only begin relatively late. From a bullish perspective, the Bitcoin could run up to the resistance at 6000 USD on Wednesday. The volatility is at a record level and risk-affine traders sense their chance. However, everything continues to revolve around the consequences of the coronavirus. And these cannot be predicted at the moment.