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Bitcoin erases an important part of their earnings in the year
The recent fall in the prices of Bitcoin has erased a significant portion of their gains year-to-date. The main criptomoneda by market value is trading currently near $7.830, an increase of 9.3% from the opening price of the year, $7.160, according to the Index of prices of Bitcoin in CoinMarketCap. Remembering that a month ago, the criptomoneda experienced an annual gain of over 45%. Noting that, at that time, the prices listed on maximum of several months close to $10,500. The recent price drop The recent drop in the price of Bitcoin occurred along with a massive sale in the financial markets traditional. The S&P 500, the stock index of Wall Street and a point of reference for global actions exceeded about 3,400 points in mid-February and fell to a minimum of nine months of 2.739 points on Tuesday. Currently, the index has fallen 15 percent annually.
Bank of England reduces the rates to a minimum in 11 years while that of Bitcoin is stabilized
The central bank of the United Kingdom has followed the Federal Reserve in the sudden lowering of interest rates, the highest amount since 2009. As several media outlets, including the Financial Times, reported on march 11 that the Bank of England (BoE) raised that the measure was in direct response to the economic pressures posed by the current outbreak of Coronavirus. The publication cited a statement that said: “The reduction of the bank rate will help to support the confidence of businesses and consumers at a difficult time, to boost the cash flows of companies and households, and to reduce the cost and improve the availability of funding.” The move takes the base rate of the BoE to only 0.25 per cent, a reduction of 0.5%. The rate of the FED now is 1.25%, with more cuts predicted this year. Therefore, it should be noted that the pound reacted immediately, losing 0.5% against the us dollar, to later retrieve some of the losses.
The US Federal Reserve added $168 billion more than the market capitalisation of Bitcoin
After several days of falling markets, the US Federal Reserve added $168 billion to the economy, a higher total than all the money currently invested in Bitcoin. “The auctions separate from the Tuesday in the market of short-term lending, or repo, saw an offer of two weeks oversubscribed massively, with $93 billion offered for an operation of $45 billion,” according to a news report from CNBC on march 10. “An offer that night and saw the table of operations of the New York FED full 123.625 million dollars in offerings.” Essentially, the Federal Reserve of the united States has put more cash in play in the economy. The market capitalization current Bitcoin comprising just about $143 billion at the time of publication, according to data from CoinMarketCap.
The economist Mohammed El-Erian that the stock market has not yet bottomed out
The price of Bitcoin (BTC) took a turn upward in the march 10, as the digital asset increased to $8.150 before you meet with resistance, which caused the price to regress temporarily to $7.730. The economist and financial director of Allianz, Mohamed El-Erian told CNBC that:
“I don’t think that we’ve reached the minimum yet, but is going to be incredibly choppy”.
El-Erian said: “it’s Going to be very volatile but, unfortunately, around a downward trend by now.” Built, El-Erian warned repeatedly to investors not to buy the drops current occurring in the market and the continuous spread of the Coronavirus in Europe and the USA. UU. clearly is affecting the sentiment of investors.