After a disappointing start to the week, Bitcoin continued on its downward spiral and plunged below $8,000 on Monday. Traders are looking anxiously as the alpha-cryptocurrency currently hovers around the support area at $7,900. Conventional assets such as stocks are faring no better either.
As the threat of a global recession looms on the horizon, let’s have a quick look at the major new developments in the world of cryptocurrencies from the past 24 hours.
Bitcoin Devolves as the Second-Worst Performing Asset on Monday
After coming out on top compared to all other commodities in 2019, Bitcoin is now one of the worst performers in 2020 so far. In fact, on Tuesday, it became the second worst-performing asset class, behind crude oil. This is probably a sign that institutions and major investors have not given in to claims that Bitcoin is the ‘perfect hedge.’
Can Bitcoin Bounce Back Amid Fears of Recession in the US and Europe?
The economic slowdown caused by the double whammy of coronavirus and a looming global oil price war is expected to soon evolve into a full-fledged recession. As liquidity in the market continues to decrease, a contraction of the economy would be the only response to corporate spending reductions.
Some have hoped for Bitcoin to remain stable in these testing times. However, the benchmark cryptocurrency has so far disappointed these proponents by shedding as much as 10% on Sunday alone.
PLUS Token Scam May Have Rubbed Salt into Bitcoin’s Wound
PLUS Token continues to dump its stolen Bitcoin (BTC) on the market, which has led some analysts to believe it may have exacerbated Bitcoin’s losses yesterday. Recent reports suggest that the wallets linked to the scam continue to dump their holdings en masse. What’s even worse is that the scammers still have plenty left to dump, meaning the Bitcoin price could further deteriorate over the coming days.
Robinhood Went MIA at the Worst Time Possible
Popular cryptocurrency and stock trading application Robinhood went offline on Monday for the second time in less than a week. The pause in services coincided with huge volatility on Wall Street and elsewhere. It seems probable that the vast moves in stock prices witnessed today attracted huge numbers of traders to use the service, which may have overloaded it again.
Just last week, many traders were left fuming after Robinhood offered them a measly $15 in reimbursement following a massive two-day outage.
Dow Jones on Track to Follow 1929 Crash
Traders are already expecting heavy losses as for the Dow Jones, S&P 500, and Nasdaq have all dropped close to 5%. If this rout continues, the losses would be on par with the crashes of 1929 and 1987.
Come April, Bitcoin May Face its Long-Term Bottom
Our technical analyst Valdrin explains why it is possible that Bitcoin might just hit its long-term bottom next month, mere days ahead of its next halving, which is expected to spark off the next major rally.
Ethereum Continues to Hold Above $200, But For How Long?
The Ethereum price had been following an ascending support line since Jan 3 but broke down from it on March 8. It is still holding the fort above the $200 psychological milestone, but it is also making consistently lower daily closes.
Bitcoin Technical Analysis for Mar 9
The Bitcoin price began a rapid decrease on March 7 which intensified the next day. This caused the price to decrease by 10%, falling sharply below several significant support areas without experiencing any type of retracement.