In brief
- Global market cap lost $35 billion in a few hours.
- Bitcoin and Ethereum both suffered losses as exchange and fiat volumes spiked.
- European and US markets are up thanks to Brexit concessions and talk of an American stimulus package.
If you’re a recent entrant into the world of crypto and crypto investing, you’ll not be pleased by today’s Market Watch.
Global market cap took a sharp downturn over the last 24 hours, dropping 6.7% or $35 billion according to data company Nomics.
Bitcoin was responsible for most of those losses, after seeing a 5.5% drop in a matter of hours. While there’s no smoking gun for what happened, there are a few clues. Exchange volume for Bitcoin went up 28% yesterday, with Binance, OKEx and Huobi receiving the lion’s share of that activity.
Another notable change was the sharp increase in Fiat volumes over the last 24 hours. A whopping 73% rise suggests people cashed out quickly. This might have been what caused the sudden drop in price: traders had been seeing the price variance of Bitcoin moving sideways, suggesting a breakout above or below was coming and some may have cashed out.
As we reported yesterday, sentiment was very mixed among investors with some predicting the long-awaited surge above $20,000 and some saying it was heading towards $16,000. At the time of writing, the bears might be right. We’re now 9 days since Bitcoin hit its all-time-high of $19,694.
Investors Split Over Where Bitcoin Goes Next As Markets Cool
It was a quiet day in crypto overnight as the frenetic activity from the last few weeks seems to be simmering down. The global market cap of cryptocurrencies ticked down by just 0.99% in the last 24 hours as most currencies in the top 20 saw minor losses. Bitcoin is down 0.58% at the time of writing, taking its 7-day rolling average to a 1.44% loss. Ethereum slipped marginally too overnight, dropping 0.91% despite its record-breaking run over the last few weeks. Bitcoin Treads Water While Eth...
The same story happened on Ethereum. A sharp downturn in price, followed by significant rises in exchange volumes (up 41%) and fiat (up 62%) movements. The markets appear jittery, and the relative strength index - a measure of momentum and price direction - is now showing that Bitcoin - and other cryptocurrencies - are being sold quickly.
If you’re a day trader, predicting where the markets move next is going to be increasingly challenging. If you’re HODLing for the long-term, keep calm and carry on.
Europe and US markets rally on Brexit and Economic Stimulus Hopes.
Things in the world of stocks and shares however are looking significantly brighter. In Europe, major European markets all opened higher as British prime minister Boris Johnson headed to Brussels to try and salvage the battered Brexit deal from collapsing.
The announcement comes after the UK dropped a contentious concession that allowed it to break from EU regulations if it saw fit. The FTSE, the DAX and the CAC 40 all responded positively.
In the US, progress on a long-awaited stimulus bill appears to be bearing fruit as a bi-partisan agreement is getting nods of approval from both sides of the aisle. The Nasdaq, S&P 500 and Dow Jones all good days and futures markets are all up in after-hours trading.
Why Bitcoin and Stocks Went Wild During A Global Recession
When historians look back on 2020 and ask what will it be most known for, there are two stories they could tell. On the one hand, 2020 could be defined by a planet rocked by a pandemic that caused millions to die, and an economic fall out that will be felt long after a vaccine is rolled out. On the other hand, historians might say that 2020 was the year investors and their returns took off into the stratosphere. In particular, Bitcoin’s record-breaking price surge, and the American stock market...
Could the stimulus bill be a boon for Bitcoin? We've argued before that this year's crypto boom was intimately connected to the Federal Reserve's actions in March this year. If crypto investors are looking for signs of better days, you'd be wise to pay attention to what happens at the White House over the next few weeks.
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