Will the crypto market bounce despite Coronavirus fears?
Julien Moretto – 11 Mar 2020
The cryptocurrency market has not been spared from the panic caused by the Coronavirus. It dropped sharply on Sunday. On March 11, Bitcoin is back on the €6,900 ($7,800) mark, down 12% in one week. Altcoins are also dropping, with Ethereum down 13.6% and Litecoin 22%.
Global stock markets are suffering a very sudden crash, mainly due to fears related to the Covid-19 epidemic and its effects on the global economic slowdown. For now, Bitcoin is following the same trend as the traditional markets, although the “safe haven” qualities that some people attributed to it might suggest a much stronger resistance to the current crisis.
But this situation could soon change, and the crypto market could find itself once again dissociate from the traditional markets thanks to the massive measures planned shortly by central banks, including liquidity injections in a context where global debts are hitting records. One thing is certain, the long-term investor should not, in this context, keep his eyes on the prices. This is the best way to take bad decisions and make mistakes. On the contrary, it is necessary to take a step back and use more than ever a tiered investment strategy, keeping capital to inject it on potentially interesting support levels. Let’s analyse the market.
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