In brief:
- In the last 48 hours, Bitcoin, Ethereum, XRP and all the major cryptocurrencies, have suffered a pullback as data suggests that COVID19 is still spreading.
- The spread of the Coronavirus has also affected the stock markets.
- BTC and the entire crypto market is highly correlated to the traditional financial markets.
- The crypto markets might never decouple from the influence of COVID19 stats.
In the last 48 hours, Bitcoin (BTC) and the entire spectrum of digital assets have suffered a setback in the crypto markets as new statistics indicate that global COVDI19 infections are continuing to increase. At the time of writing this, the global confirmed cases of the Coronavirus now stands at 12.2 million.
Yesterday, the U.S set a one-day record with over 60,000 confirmed new cases. Furthermore, the rise in infections has had an impact on the stock market on fears of new lockdowns to curb the spread of the pandemic.
Bitcoin, Ethereum, XRP and other Cryptocurrencies Suffer a Pullback
Checking the charts, the S&P 500 and the Dow Jones Industrial average were hard hit by the news of new infections. As a result, Bitcoin, Ethereum, XRP and the entire cryptocurrency spectrum were also briefly knocked down in the markets by the news.
Since the news broke, Bitcoin’s journey above $9,500 was halted and the King of Crypto dropped to the $9,150 support area and is currently trading at $9,133. Additionally, Ethereum’s attempt at breaking $250
was cut short by the news and dropped to the $232 support area. ETH is now trading at $238.
In the case of XRP, the remittance coin has had to halt its mission of reclaiming the number 2 spot from Tether on Coinmarketcap. XRP is battling to maintain the familiar $0.20 support zone and is trading at $0.197.
Bitcoin and Crypto Will Continue Being Affected by the Global Spread of COVID19
It is clear that Bitcoin and the entire crypto market is highly correlated to the global spread of the Coronavirus as well as its effects on the traditional markets.
Therefore, it might be prudent to conclude that Bitcoin, Ethereum, XRP and the crypto markets, are still very much tied to the progress made in combating the spread of the Coronavirus. As a result, if the numbers keep increasing, all digital assets will continue being affected by the statistics related to COVID19.
However, there is a glimmer of hope as 145 vaccines against COVID19 are currently in development with 22 of them already in human trials. This means that the world could be a few months away from a working vaccine, and with it, relief for Bitcoin and all digital assets.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
