The past couple of months have been quite tumultuous in all senses, with rising tensions among regions and the spread of deadly diseases such as the Coronavirus. In the midst of all this, the financial market has fluctuated massively leaving lower dollar prices and cryptocurrency values.
Generally, during times of turmoil, the cryptocurrency market elevates in value. This time, however, the market has been taken over by the bear while traditional assets started going up.
Over the past t24-hours, the world’s largest cryptocurrency fell by 5.04 percent with the weekly drop clocked at 10.72 percent. At press time, Bitcoin was trading for $8,732.53 with a total market cap of $159.27 billion. The 24-hour market volume had fallen to $51.613 billion after staying above the $50 billion mark consistently.
The reason why the community is flustered by the drop is that assets like Bitcoin are considered a ‘safe haven’ during critical times. The fact that the traditional stocks and Bitcoin behaved the same way has definitely come as a surprise to a lot of people. Frank Chapparo also commented on Bitcoin’s fall by saying:
“This [Bitcoin] is still a very nascent, volatile asset class. If I’m an investor and I want predictability in my portfolio, I’m not going to be outsized allocating to bitcoin and other digital assets. Now, that doesn’t mean that this narrative of bitcoin being a hedge against global economic insecurity or political insecurity [is wrong]. That’s still something that could play out over the next ten, fifteen, twenty years.”
Over the past week, altcoins such as Ethereum, XRP and Bitcoin Cash were also down compared to their previous week’s performance. Ethereum fell by 4 percent while XRP and Bitcoin Cash fell by more than 6 percent and 9 percent respectively. On Tuesday, Bitcoin fell by more than 3 percent while XRP and Bitcoin Cash fell by 6 percent.
During the same time period, the Nasdaq 100’s 14 days RSI fell below 50 on Monday. This broke the longest streak above the 50 mark. Stocks such as Western Digital fell by 6 percent while Microsoft and Apple fell by one percent. This Monday, the Nasdaq 100 fell by a total of 3.89 percent which was its worst performance since October 2018.
The spread of the Coronavirus has terrified citizens across countries with Italy and other European countries reporting new cases every day. Chinese stocks have also taken a massive hit in terms of market cap and volume movement.