I remember, on march 12th, Bitcoin dropped 50%. This surprised me.
I've heard that this figure is a biggest daily drop in the last seven years.
On March 12th, President Trump announced a travel ban on people from European countries for the next 30 days.
And The Dow Jones Industrial Average showed huge volatility.
There is an opinion that this led to a decline in bitcoin.
Are Dow Jones and Bitcoin really related? Or is it just the effect of the danger of the coronavirus?
Eric Thies, a cryptocurrency trader and technical analyst, share this :
Today ’s massive dump in both the crypto markets and the traditional markets was very interesting to say the least. While many would say it is solely due to the coronavirus, looking into it further and you will see this does not show the usual signs of a recession. This may be because of the war on oil that many people have not heard about due to the news of the virus. (...)
One thing I think that is overlooked by many crypto investors is the money flow in this new market cycle. This is the first market cycle where the weight of the money will potentially be held by institutions. That means that Bitcoin is now tied to the traditional markets, and far from being a safe haven when it comes to the emotional cycles of humans, and our instinct to save our money when we become fearful.
Joe DiPasqual, the CEO of BitBull Capital, a crypto investment firm, shares this :
Bitcoin ’s recent price action is primarily a result of the coronavirus outbreak affecting global markets and driving investors towards the safety of cash, (...)
With this sharp decline, Bitcoin ’s potential as a safe-haven asset is being questioned, but we believe it is too early to seek any correlations between Bitcoin and other asset classes.
Current bitcoin price flows are better than before. But should I be nervous?
The number of confirmed cases of corona in the U.S. by today is 424,945.
What do you think?
Thanks for any comment and discussion.
And I want you to be safe from the coronavirus.