Bitcoin price increased in tandem with stocks overnight to around $5,650, stabilizing at the $5,500
Following US President Donald Trump’s announcement of a national emergency, the stock market rebounded sharply, announcing the biggest single-day gain since 2008. Bitcoin price also rose in tandem with stocks. to around $ 5,650, stable at $ 5,500.
Stocks and Bitcoin price gained
Both of these assets had rallied because the national emergency opened up many financial resources and resources for the government to fight the Coronavirus pandemic when the disease outbreak in the US became worse. Just 48 hours ago, Bitcoin’s price hovered at $ 8,000 on most major cryptocurrency exchanges, including BitMEX.
Within two days, the Bitcoin price has dropped from $ 8,000 to $ 3,600 and has recovered to $ 5,500 since then. After such a significant decline, in theory, a flash crash caused Bitcoin’s price to drop to almost zero due to an unprecedented series of liquidation. Even many traders warn that Bitcoin could consolidate even more.
Investor Koroush AK said:
For real though,
People out here calling for a full reversal.
After the biggest daily dump in bitcoins history.
Amidst a global crisis and world wide panic.
No technical/fundamental reason exists to be bullish immediately after this.
Nothing short of complete delusion.
— Koroush AK (@KoroushAK) March 13, 2020
Similarly, the professional trader Wolf noted that despite the optimistic sentiment in the market after President Trump’s press conference, when the US officially carries out quarantine in big cities, the market might start to respond to the target again. The recovery of the US stock market on March 13 also came shortly after a 9.99% drop, the most significant decline since 1987.
My thoughts after the speech. pic.twitter.com/JrNHLAMzDd
— wolf (@ImNotTheWolf) March 14, 2020
Institutional sell-off levels have been recorded throughout the week. Analysts have anticipated a definitive response, and the government’s acknowledgment of the need for a more robust response to the Coronavirus pandemic has improved market sentiment.
The effect of Coronavirus is enormous
The United States is still at an early stage of the coronavirus outbreak compared to other countries such as China and South Korea – which have passed the peak of the virus. Studies from reputable organizations like Northeastern University have found that some states like Massachusetts are at risk of seeing a local epidemic the size of Italy.
Sam Scarpino, assistant professor of Northeastern Disease Laboratory, said:
“Massachusetts is smaller than Italy. It has about 100 cases. There were 159 cases in Italy two weeks ago. That’s it’s where we headed.”
The speed of Coronavirus outbreaks, either spread or prevented, will have a significant impact on the stock market, and ultimately Bitcoin in the short term.
Ethereum has just experienced the worst trading day in history
In the terrible downturn of the cryptocurrency market in recent days, Ethereum (ETH) could not stand out from the general trend of the market. However, ETH has been slightly adjusted, so March 13 has become the worst day in the history of the coin.
In early 2020, Ethereum became one of the best performing altcoins. In line with the general trend of the market, many people have expected that the coin can return to the past peak – nearly $ 1.500.
However, the short-term fun day was not as good as the day, when the storm moved, sweeping away all the efforts of the cryptocurrency market in general, investors panicked to withdraw money and cause network congestion, skyrocketing transaction fees.
Not to be outdone, it’s Ethereum’s worst ever day as a financial asset, by a significant margin (-43% with the runner up being -27%). pic.twitter.com/OS2Urcq2Jc
— nic carter (@nic__carter) March 13, 2020
This is the worst trading day in the history of Ethereum, -43% within 24 hours, the previous record was -27%. The latest volatility has dropped ETH by 45% from the last week, currently trading at around $ 130. The volume of this sell-off is also among the largest in history, with $ 30 billion. Ethereum’s slide also harms the entire cryptocurrency ecosystem, resulting in the liquidation of lending DeFi programs.
The adverse effects on the coins in the ETH network due to congestion are undeniable proof that some projects are still heavily influenced by ETH. Currently, the Ethereum network congestion has eased somewhat, resulting in a gas charge of only $ 0.15 for the fastest transactions.
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