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Coronavirus Continues to Wreak Havoc on Cryptocurrency Market

March 16, 2020 at 13:50 by Matt Jackson

All cryptocurrencies in the top 100 are showing red this morning, with the exception of stable coins tethered to the Euro. The loss comes as a result of the continued spread of the coronavirus Covid-19 and despite the US Federal Reserve announcing a $700 billion plan to support the economy. Investors are worried that the Reserve has no more moves to make when the virus worsens.

The coronavirus Covid-19 continues to dominate headlines and determine market movements. More than 160,000 cases have been reported around the world with more than 6,500 deaths now confirmed. Recent figures also show that there are more cases outside China than inside the country, for the first time since the outbreak began. Italy has seen more than 25,000 confirmed cases and 1,800 deaths while Iran has nearly 14,000 cases and 724 deaths.

Fears of a global recession continue to mount, and global banks and governments have taken steps to try and ease fears, provide support, and keep economies afloat. The US Federal Reserve announced that it was cutting interest rates to nearly zero and were launching a $700bn stimulus program that included the purchase of government bonds. Immediately following the Federal Reserve’s announcement, Bitcoin prices spiked, rising from $5,200 to nearly $6,000 but the increase was short-lived and prices started tumbling in the early hours of the morning, breaking down through $5,000. At one point, BTC crashed through the $4,500 level, but it has since recovered to the $4,800 level.

As expected, it isn’t just Bitcoin that has been hit by the decline. All of the 100 largest coins by market capitalization, apart from stable coins tethered to the dollar or Euro, are showing red. Tezos has dropped nearly 25%, along with ChainLink. IOTA is down nearly a third in the past 24 hours while Komodo has seen the largest losses of the top 100 list, falling more than 40%.

Total market capitalization stands at $135 billion, down from $153 billion at the same time yesterday.

Bitcoin Total Market Capitalization

Cryptocurrency isn’t alone in its decline. The FTSE 100 is down more than 8% and at its lowest since 2011. Oil prices have fallen 8% thanks to a combination of factors. Not only is demand low as millions of people work from home and limit travel, but the market is still reacting to the news that Russia and Saudi Arabia have failed to come to an agreement to curb oil supply. Investors are even turning their backs on investments that have historically been considered a safe haven, as cash is now being considered the safest investment of all. Having lost 8.6% last week, gold has continued its decline with a further 5.1% decline. The yellow metal is now trading just above $1,450 an ounce.

Cryptocurrency investors don’t have much to look forward to in the coming days and weeks, according to most analysts. Bitcoin has broken down from a bear pennant on the 4 hourly charts, which could see its prices fall as low as $2,000.

Bitcoin Bear Pennant

Trader Peter Brandt warned that the situation could be far worse and that investors should expect to see prices fall below $1,000. Historically, Brandt is bullish on Bitcoin and cryptocurrency but the trader, who predicted the market crash from its all time high and even accurately called a spike during the crash, tweeted that if he interpreted “the chart without bias, I would say sub $1,000.”

At 13:40 GMT, Bitcoin (BTC) prices are down 9.71% in the past 24 hours, and the world’s largest cryptocurrency is trading at $4,846.65. Ethereum has fallen by 12.98% and is changing hands at $109.64. Ripple (XRP) and Bitcoin Cash (BCH) are down 9.5% and 7.56% and now cost $0.14 and $160.76 respectively. Litecoin (LTC) prices have lost 11.77% and the cryptocurrency now costs $31.76.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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