More

    Bitcoin’s Outlook is ‘Bleak' with No Bailouts; Just Cold and Brutal But A Market Full of Hope

    • Fed surprised by “over-delivering before schedule”
    • Investors “selling whatever they can” as spreading coronavirus spurs panic across markets
    • “There is nothing which can be classified as a safe haven — not even gold.”

    Bitcoin is back in the green, trading around $5,400, up 10% in the past 24 hours. Altcoins are trailing behind recording gains of as much as 14%, recovering $20 billion. The price of the Bitcoin has lost 48% of its value since last month's high in accordance with the stock markets.

    We headed into this week with global lockdown and the fear of recession which the Federal Reserve tried to better by cutting rates to zero percent and announcing a $700 billion QE.

    While bitcoin maintained its position above $5,000, the stock market fell hard, triggering circuit breaks almost every day now as the Fed surprised by “over-delivering before schedule.” Major central banks also announce coordinated action to enhance liquidity via swap lines.

    “This is all extremely bullish and should help markets pop hard. All markets,” said economist and trader Alex Kruger.

    The assets will rally hard only to fade on lower volatility. Kruger expected lower lows in the equities down the line because

    “the real economy will visit purgatory, and a multi-months bottoming process followed by a strong reversal. Vol should fall. All markets include crypto. Also very bullish for gold.”

    There’s nothing which can be classified as safe haven

    The market faded on one of the most bullish Fed actions sending stocks down. The dollar was also crushed. The US equities plunging is a sign that investors have lost confidence in easing policy as a way to combat the economic effects of the spread of coronavirus.

    Bitcoin’s outlook is “bleak” as it continues to trade in line with risk assets, “almost tick for tick. The S&P 500 is the market guide.”

    The precious metal has been extending its losses today after its worst week in about four decades with investors “selling whatever they can” as the economic impact of coronavirus spurs panic across markets.

    Gold “is being sold to generate liquidity and to offset losses in other markets,” Zumpfe of Heraeus said.

    “In some cases, investors also sell their gold holdings in order to keep the value of the precious metal constant in their overall portfolio. Due to the lower value of the equity share, gold would otherwise take up a larger share in terms of value.”

    According to Naeem Aslam, chief market analyst at Ava Trade, “The traditional rules are out of order and there is nothing which can be classified as safe haven — not even gold.”

    However, Kruger says those which are affected by the dollar liquidity will perform best. This means gold “should start acting again like a safe haven.”

    Unlike the traditional market, the crypto world doesn’t have any bailouts by the government. There would be no QE, president pump, pointed out Xinxi Wang, the co-founder of the Litecoin Foundation.

    “It's just you and the market, the cold and brutal but full of hope market. To survive in such a market, make sure you are disciplined. Set rules for yourself. 1. Don't risk what you cannot afford. 2. Best not to use leverage. 3. Make sure you can bear the leverage,” advised Wang.

    Bitcoin (BTC) Live Price

    1 BTC/USD =$6,788.2497 change ~ 0.72%

    Coin Market Cap

    $124.26 Billion

    24 Hour Volume

    $6.01 Billion

    24 Hour VWAP

    $6.76 K

    24 Hour Change

    $49.0887

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    AnTy
    AnTy
    AnTy has been involved in the crypto space full-time for over a year now. Before his blockchain beginnings, he worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,366FansLike
    2,783FollowersFollow
    4,135FollowersFollow

    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Galaxy Digital's Mike Novogratz: This Is The Year For BTC Or I Might ‘Hang Up My Spurs'

    Bitcoin proponent, Mike Novogratz is still “most excited” about the world's leading cryptocurrency but “if it doesn't go all out by the end of...

    National Internet Finance Association of China Warns Against Manipulative Crypto Exchanges

    The National Internet Finance Association of China(NIFA) has issued a warning for investors who have been associated with the crypto-verse about the growing risks...

    Cash is King in Coronavirus Ravaged Economy But Bitcoin is “Next in Line to the Throne”: Hedge Fund Manager

    Mark Yusko, the CEO at Morgan Creek Capital Management says coronavirus is unleashing a once in a lifetime downturn. Yusko appeared on CNBC’s “Trading Nation”...

    Bitcoin’s is Gold 2.0; Billionaire Chamath Palihapitiya Lays Out BTC’s Path Forward in Macro Backdrop

    In the latest episode of The Pomp Podcast, host Anthony "Pomp" Pompliano had Chamath Palihapitiya, the CEO of Social Capital as a guest who...

    Binance ‘Leak' Signals Possible Bitcoin Options Trading Launch On The Exchange

    The competition across cryptocurrency exchanges in the crypto derivatives markets is heating up to a boiling point as yet another big player hints at...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.