Veröffentlicht: 09.04.2020

Rising markets despite coronavirus! How does that fit together?

Price rally continues

A look at the major stock indices should come as a surprise to many people. The traditional markets have been delivering an impressive performance for days now, despite the fact that the world is in a tangible economic crisis. Have we missed something or how did this development come about? We take a look at the current situation.

Global markets in focus

On Thursday, the well-known stock indices almost seamlessly continued the trend of the previous days. The Down Jones Industrial recorded a plus of 3.44 %, while the DAX (+ 0.21 %) and the Nikkei (-0.11 %) consolidated. Wall Street has been on the rise since 23 March, although New York is the current epicentre of the coronavirus pandemic. The death toll continues to rise and millions of people will lose their jobs. Nevertheless, the markets are performing apparently unimpressed. But why?

Possible reasons

At first glance, the rally seems pointless or even crazy. Why are investors pushing the markets upwards in this uncertain phase? If you take a closer look at the charts, you can understand the assessment of many experts. Accordingly, we are still in a bear market and the current correction is normal in such a stock market cycle. In addition, one should bear in mind that many markets suffered record losses after the outbreak of the COVID 19 pandemic, which could last be seen more than 80 years ago. There is much to suggest that the current crisis has already been fed into the share price.

IMF continues to warn

The IMF is currently expecting the biggest financial crisis since the Great Depression in 1929, and the International Monetary Fund sees “the worst consequences” imminent. Unemployment and falling incomes are only the peak of the iceberg. The world is moving towards an uncertain future.

Bitcoin rally continues

On Thursday, Bitcoin will maintain the strong level of the previous days. At the time of writing, the BTC price stands at 7312 USD. Thus, the No. 1 crypto currency confirms the bullish trend of the previous days. Chart analytically, the trend line at 7300 USD now forms the new support line. The coming resistances are initially at 7500 USD and 7800 USD. In the past 24 hours, investors have traded a total volume (BTC) of just under USD 36 billion. This figure suggests a quiet trading day. Digital gold is currently hedging the strong gains of the past weeks and consolidating at the $7300 level.

Altcoins increase

A Bitcoin Dominance Index of 64 % reflects the current market situation very well. The alternative assets are still strongly linked to the BTC. However, this situation is actually benefiting them at the moment. Ethereum stands at around 170 USD after the latest price gains, Ripple is struggling at the 0.20 USD mark and the well-known Bitcoin Forks rank behind Tether. With a price increase of a whopping 22%, Chainlink is currently attacking the coveted Top 10 of the crypto charts.

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