Market update
After dropping to $9721 yesterday, the Bitcoin price was trading just under $10,500 at the time of writing to end the week close to where it began. The 9% increase since yesterday once again reflects moves on traditional markets, with the US S&P 500 up 3.3%, the FTSE 100 up 1.7%, and the ASX200 up 7% yesterday. This correlation is a potential danger sign as many pundits tip further falls on traditional markets as the coronavirus death toll rises and economic impacts become clearer. Most of the top ten are trading where they were this time last week: Ether (0.15%), Bitcoin Cash (1.22%), Bitcoin SV (-1.5%) and Litecoin (1.6%). XRP gained a more significant 9.3%, while Stellar was up 2.9%. The crypto Fear and Greed Index is at 10, indicating Extreme Fear – however Bloomberg’s GTI Vera Convergence Divergence Indicator has just flashed its first buy signal in three months.
This week has been a rollercoaster ride. The Bitcoin price crashed along with global stocks (leaving the ‘safe haven’ narrative worse for wear) but both staged a comeback in the past 24 hours. A few hours ago, the Dow Jones closed 1284 points up for its biggest gain in history, in the wake of reports that central banks will take action to combat the coronavirus induced slowdown. Bitcoin has also surged 4.2% on yesterday. Sure, it’s still down 7.4% on a week ago, but things are no longer looking so grim. The top 10 are recovering, but remain down on a week ago: Ethereum lost 12.4%, XRP (-11.3%), Bitcoin Cash (-10%), Bitcoin SV (-7.9%), Litecoin (-18.2%), EOS (-9.2%) and Stellar (-14.8%).