Cryptocurrency Market Update: Bitcoin bulls return, Coronavirus rampage unstoppable
|- Bitcoin price rebounds significantly compared to the S&P 500 amid Coronavirus pandemic fears.
- The US Fed chair, Jerome Powell and Bank of Japan vow to act according to support the economy.
Bitcoin bulls appeared to have found balance on Monday following a recovery move that pushed it towards $9,000. Although BTC/USD did not clear the resistance at $9,000, a weekly high was formed at $8,976. The rest of the crypto market reacted positively alongside Bitcoin, however, the change in the altcoins still lagged behind Bitcoin’s recovery margin.
ETH/USD for instance, pushed above $230 but stalled under $235. The price has since corrected back under $230 and is now teetering at $228. Ether has already lost 2.3% of its value on the day. However, charts show a building bullish momentum but the volatility is shrinking. Which suggests that price movement is likely to continue being limited.
XRP/USD, on the other hand, is trading at $0.2345 in the wake of a 2.14% loss on the day. An attempt to break $0.2400 failed as Ripple price formed a high at $0.2399. Due to the bullish bias trend in the short term and the expanding volatility, it is apparent that XRP/USD could forge another attack on $0.2400 resistance.
Coronavirus outbreak impact on blockchain conferences
As fears of a possible global pandemic mount, crypto conference organizers are left with no choice but to either cancel or postpone conferences. In France, the Paris Blockchain Week event has been pushed to December 9.
However, the annual, Ethereum Community Conference (EthCC) was allowed to go on as planned as attendees are no more than 5,000. However, the attendees have been very cautious amid fears of the virus infections increasing. Other affected crypto events include NiTROn2020 which was to take place in Seoul, the Hong Kong Blockchain Week 2020 as well as Token2049.
Stocks continue to bleed
While stocks saw a breather on Monday following Fed Chair Jerome Powell’s comments on Friday that his institution was going to use it’s “tools and act as appropriate to support the economy.” The Director of currency research at TradeBlock based in New York, John Todaro said regarding the crash in the markets:
Investors are dipping their toes back in the water after last week [when] they jumped out of the pool.
Todaro added:
This easy monetary policy across central banks should continue to support markets in general, especially in risk-on areas like equity markets, and that should bleed into other asset classes like digital currencies, including bitcoin.
Bitcoin’s rebound closes in on $9,000 and leaves the market approximately 24% up since the beginning of the year. Bitcoin is performing better compared significant stocks such as S&P 500, which is still down 6.8% since the beginning of 2020.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.