Bitcoin price ended the first quarter with a 10% drop, so what about traditional markets?
Bitcoin price ended the first quarter of 2020 at a price 10% lower than the beginning of the year, but this is still an encouraging achievement when the global financial market is very tragic in the middle of Corona storm.
Since the monthly close that transpired at the turn of the month, Bitcoin price has tanked
Within 24 hours, Bitcoin increased slightly, and Ethereum also had a small green candle at the end of the day. Meanwhile, the performance of other coins in the market is still quite mixed.
Notably, XRP increased by 2%, Cardano also increased by 1% during the day. The properties with a one day discount are DASH and BSV (1% discount together). For the traditional market, Japan’s Nikkei 225 also saw a slight decrease of 1%. Meanwhile, the US S&P 500 dropped 1.6%. In contrast, European FTS 100 ended the day with a 1.3% increase.
However, considering the scope of the first quarter of 2020, the Nikkei 225 has decreased by 20%, the most significant drop in the quarter since 2008. FTSE has also dropped 14% over the same period, this is the second quarterly performance in history. The S&P 500 has also dropped by 18% for the worst quarter since 1938.
However, Bitcoin ended the quarter with a 10% drop. Despite its encouraging performance, Bitcoin is still in a downward trend and appears to be strongly affected by traditional assets.
However, this is not the first time this synchronization has occurred.
Siddhartha Jha, a former Wall Street analyst, said:
“It is difficult to be completely conclusive at present. We had had correlated times like this in the past, like 2018, when Bitcoin plunged in December at the same time as other assets.”
Another essential detail with Bitcoin is the index of contract positions opened on BitMEX. Accordingly, this figure reached the lowest level in the past 18 months, even though this derivative trading floor continuously witnessed increasing trading volume.
Parameters on BitMEX derivatives exchange
A property considered to be a residence of Gold also dropped 2% yesterday, breaking the previous stable model and unable to withstand selling pressure at the end of March.
The future is ahead
While the Corona epidemic has not had any positive signs, many analysts said that it is still not sure about the future and the possibility of the world economic recovery.
Guy Hirsch, director of multi-asset management at the eToro platform, said:
“The crisis will usually last for a longer range, at least two consecutive quarters.”
Besides, whether the US dollar can retain its position and the purchasing power after the massive stimulus package from Washington is still an issue that many investors have to watch.
“Many agree with the view that the Fed’s announcement of loosening policies makes it possible for many investors to consider Bitcoin as a place to reduce risks and avoid inflation.”
Most analysts seem convinced that the recent price drop is down for the cryptocurrency market, rather than a rapid fall that will be followed by a rebound to the $ 6,000 average.
Although not a concrete prediction per se, Tyler Coates, a prominent crypto trader formerly known as “Financial Survivalism,” posted the below chart, showing that Bitcoin could head back into the $4,000s should it follow the inverse of the price action that transpired from March 12th to the 18th or so.
— Tyler D. Coates (@Sawcruhteez) April 1, 2020
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