World economy massively threatened
The collapse of traditional markets is reminiscent of the financial crash of 2008, but the triggers are fundamentally different. The current pandemic is based on a serious virus that is spreading across the globe at breakneck speed and causing people to panic. Some experts even believe that the current crisis is comparable to the Great Depression of 1929. Let’s take a look at what is happening right now.
Bitcoin course in detail
At the time of writing, Bitcoin is quoted at USD 5417 and has a daily volume of approximately USD 41 billion. The support level at $5000 seems to be holding and yesterday’s pullback was confirmed today. From a bullish perspective, an attack on the resistance at 5600 USD would be quite possible if the overall situation eases in the coming hours. However, this is not likely to happen.
Fear, Uncertainty and Doubt
In recent days it has become clear that Bitcoin is orienting itself towards traditional markets in the current crisis. The reputation as a crisis-stable “Store of Value” is gone for the time being, the effects of the pandemic are too great. Accordingly, a look at the global economy is recommended at the moment. What are the reasons for a continuing global economic crisis?
Reasons for a global economic crisis
The “Black Monday” was to turn out to be the signpost for the week and the “Black Thursday” finally sealed the crisis. On Friday, the Down Jones recorded the worst day since “Black Monday” in 1929, Wall Street keeps plummeting and the oil price suffers additionally from the trade conflicts between Russia and Saudi Arabia. Rising unemployment figures in Europe, overcrowded hospitals in Italy and entry bans in countless countries are anything but reassuring. Various rescue parachutes and falling infection rates from China offer at least a small glimmer of hope.
155653 reported cases, 5816 fatalities and 151 affected areas. The figures speak for themselves, the situation is serious. On the one hand, about half of those infected have been cured by now, on the other hand, the fight against the virus is becoming a race against time. Doctors and researchers are working at full speed on possible vaccines and bans on going out and gathering are to prevent a rapid spread.
Question of time
Cryptomarket related forecasts are difficult to impossible, as the entire market is currently oriented towards traditional markets. Edward Snowden assessed the situation in a tweet as follows: “This is the first time in a long time that I feel like buying Bitcoin. That drop was too much panic and not enough reason.” The fundamentals have not changed in the past few days, but nevertheless “digital gold” has plunged by over USD 4000.
The cryptomarket is primarily oriented towards the traditional markets in the current crisis. The Altcoins in turn orientate themselves on Bitcoin and can easily compensate the losses of the previous day on this Saturday. All eyes are focused on the news around the corona virus.