- The cryptocurrency market has again suffered a sharp drop in the past 24 hours, leading to significant losses for Bitcoin, Ethereum, XRP, Chainlink, Cardano and Tezos, among others.
- Analysts see the coronavirus as a “black swan”, an event that occurs extremely rarely and, contrary to all trends, has a strong negative impact on the market.
Bitcoin, Ethereum and Co. seem to be metaphorically speaking infected with the coronavirus. Over the past 24 hours, the cryptocurrency market has experienced a further sharp drop which has resulted in an outflow of 11 billion US dollars from the cryptocurrency market. The top 20 cryptocurrencies are recording a deep red tableau.
At the time of publication, the Bitcoin price had fallen by around 4.2 % to USD 7,549. However, the altcoins are posting even higher losses. Ethereum has fallen to USD 176 (-11.9 %), XRP to USD 0.1944 (-7.8 %), Tezos to USD 2.21 (-14.4 %), Chainlink to USD 3.18 (-21.0 %), Cardano to USD 0.03590 (-12.9 %) and Monero to USD 49.99 (-8.7 %). The bottom that many had hoped for does not seem to have been reached yet.
Coronavirus infects Bitcoin and paralyses the entire world
The negative news concerning the coronavirus are ‘t abating at the moment. In the last few hours the corona virus has led to Italy being closed to the whole world, travel restrictions between Europe and the United States, the American basketball league NBA being stopped and the St. Patrick’s Day Parade in New York being cancelled.
As CNBC reports, the Chicago Mercantile Exchange (CME) will also close its trading desk in Chicago as of March 13 due to the corona virus. The CME is the world’s largest exchange for financial derivatives and offers, among other things, the popular cash settled Bitcoin futures. The CME cited as reason for the decision the prevention of the spread of the coronavirus. In a statement, the CME stated:
No coronavirus cases have been reported on the trading floor or in the Chicago Board of Trade building. The reopening of the trading floor will be evaluated as more medical guidance on the coronavirus becomes available.
Many analysts refer to the coronavirus as the “black swan”. Adaptive Capital’s popular analyst Willy Woo said that Bitcoin’s on-chain fundamentals looked very strong until recently and supported the outbreak of Bitcoin over $10,000. Although Woo believes Bitcoin’s long-term outlook is solid, the current on-chain data points to a more worrying situation in the near future. Woo wrote:
This is a chart of on-chain “investor activity” right now. Long term looks solid. Short term is very weird, normally it’s smooth oscillations, not anymore, it’s like something hit it (#COVID19?), it’s fizzing out. Waiting for this to reverse before we put in a bottom. Maybe soon.
Woo further explained that the appearance of the coronavirus for Bitcoin is a “black swan”, an extremely rare and unpredictable event that paralyses the global economy. Due to the unpredictability of the coronavirus, the strong fundamentals have been invalidated.
Number of Tether addresses increases strongly
As Glassnode reports, a rapid increase in tether (USDT) addresses has been seen during the recent drop in prices. As Glassnode twittered yesterday, the number of new Tether addresses has increased by 9.9 percent within 24 hours, from 643,903 to 707,875. This led several analysts to suspect that many investors want to escape the volatility in the crypto market, which may explain the recent slump in the crypto market.
📈 $USDT Number of New Addresses (3d MA) increased significantly in the last 24 hours.
Current value is 707.875 (up 9.9% from 643.903)
— glassnode alerts (@glassnodealerts) March 11, 2020
How the crypto and Bitcoin market will develop is currently difficult to predict due to the panic surrounding the coronavirus. Analyst Nik Yaremchuk, also from Adaptive Capital, said that he expects a sideways movement before reaching the low point and before BTC rises again to $8,200. Yaremchuk also pointed to the Wyckoff scenario, a very bullish chart pattern for the long term.
I think there will be a sideway here, then we will get another low and then after that we will break $8,200. BTW, look at the Wyckoff scenario. Perhaps this will not be a new low, just a sideway.$BTC pic.twitter.com/ElUHTgv6Ga
— Nik (@truenomic) March 11, 2020