Bitcoin's price continues to move in tandem with U.S. stocks, thus acting as a risky asset.
The only crypto stablecoin market is blue Source: Coin360
The price of the leading cryptocurrency has dropped 5.7% in 24 hours, which is equivalent to the U.S. stock futures contract when it emerged that President Donald Trump has banned all flights coming from Europe, except for Brother.
A difficult day with stock
According to CNN this morning, President Trump said travel restrictions to prevent COVID-19 disease did not apply to people traveling from Britain.
We will be suspending all travel from Europe, except the United Kingdom, for the next 30 days. The policy goes into effect Friday at midnight. pic.twitter.com/Yeq1gVCIln
– The White House (@WhiteHouse) March 12, 2020
The above entry restriction order is effective from March 13 and lasts for the next 30 days. President Trump also urged older Americans not to travel if not needed.
US President Donald Trump has canceled events scheduled for this week in Colorado and Nevada due to concerns that a new Corona virus ((ARS-CoV-2) causing COVID-19 disease outbreaks), Reuters said. White House member Stephanie Grisham.
Although Trump has made it clear that restrictions do not apply to commodities, the future of the Dow Jones and S&P 500 is still down more than three percent after two benchmark indices plunged into the bear market on Wednesday.
Meanwhile, Chicago-based CME Group, which launched Bitcoin futures contracts at the end of 2017, is expected to close the exchange to prevent potential infections.
World gold price at 14:30 on 11-3 at 1,665.4 USD / ounce, continuing the downward trend. The selling price of SJC gold piece was 47.45 million dong / tael, then inched up to 47.5 million dong / tael.
Experts also predict that in the coming time, many countries will continue to loosen monetary policy to revive the economy.
Last week, the US Federal Reserve (FED) also unexpectedly cut the basic interest rate to 1-1.25%, although the Fed previously insisted that it would suspend the interest rate cut cycle to normalize monetary policy. Many experts predict that FED will lower interest rates in this meeting in mid-March. Yesterday, the Bank of England also unexpectedly reduced 50 basis interest points to 0.25%.
Bitcoin reacted to Trump's ban
Despite a popular belief that BTC is a safe haven, it continues to plunge along with stocks. Economist Alex Krüger claims that cryptocurrencies are currently trading as a risky asset.
Comparison chart of Bitcoin and S & P500 by Alex Krüger
Bitcoin is trading like a risky asset. Not a safe haven, but the exact opposite. Following the fall of the stock.
However, he also repeated that:
I said Bitcoin is trading like a risky asset, not Bitcoin is a risky asset. For risk management reasons. It doesn't matter what it is, what it is doing.
John Capital's John Melas-Kyriazi noted that BTC has a strong correlation with equity based on its one-month performance.
Looking over the last month might be more instructive for how people treat BTC in a panic. Some heavily correlated with public equities. At least for now. pic.twitter.com/nu1a0oQ2jU
– John Melas-Kyriazi (@jmelaskyriazi) March 11, 2020
It is therefore safe to say that BTC is not the reverse cycle now, but things may change as central banks start printing more money, according to BlockTowerCapital's CTO, Ari Paul.
Meanwhile, analyst Josh Rager is working out a short term chart for BTC.
He said that Bitcoin is likely to continue to slide down to the $ 7,200 range, where pulback is likely.
The Trump effect is taking place in the market after the press conference.
Bitcoin had a good rally in $ 7,500, but most likely its price will drop to $ 7,200 – $ 7,300 before another sharp price increase I bid from $ 7,300 to 7,100 dollars, he tweeted with the chart above.
See bitcoin price online here.
According to AZCoin News
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