The equity and Oil markets have extended their decline to new lows, as investors sell in the middle of the COVID-19 pandemic in a hurry. Bitcoin has shown in recent weeks, a striking correlation to the stock market, but he has ignored today’s crash, and about $5.100 held. The big question is: Will he be able to withstand pressure?
S&P falls to the lowest level in three years, Oil prices plunge to 18-year lows
How often it was reported, the following bitcoin Performance is often the Dow and S&P 500 indices for the US stock market and the representative. The largest crypto-currency has moved, however, since last Friday sideways and shows an unusual stability in the midst of significant losses in traditional investments.
The S&P 500 fell by almost 8% at 18.35 UTC, and updated the lowest level since February of 2017. Elsewhere, the Dow Jones slipped almost 10% to the lowest level since November of 2016. Both indices have compared to their February peak, around 30% of stands lost.
Also, the Oil market is once again broke, and at that time the lowest level in more than 18 years of age. The Brent Futures fell toward the ground at the time of preparation of this report, about 11%, while the WTI Futures have fallen by about 22%.
The two crude oil brands are currently being traded with 25,40, or 21,28 of dollars. Oil prices began to decline after Saudi Arabia declared a price war against Russia and the OPEC+Alliance had dissolved. The world’s largest oil Producer, lowered its official oil sales prices and increased production in a time in which the Demand for oil drops.
Investors even throw those assets, which typically have served as a safe haven, including Gold, silver and government bonds. This shows that everyone is looking for cash. The irony is that even cash will be devalued as Central banks reduce in a coordinated effort, the interest rates and money, through quantitative easing pumps.
According to Peter Boockvar, Chief Investment Officer of the Bleakley Advisory Group, proves the sale of state bonds, that the attitude of the market has come full circle. He told the Wall Street Journal:
“Now, where the Treasury offices are, says you, that legitimately can’t be sure. There is no other place to Hide than cash.“
Bitcoin is a good refuge?
Bitcoin has fallen in the last 24 hours by more than 1.5%, the data from Coinmarketcap, but that’s one small step for the digital currency.
The crypto-king could put up a fight against the current market carnage, but it could be tomorrow or in the coming days will test new lows, as the panic seems to have no bottom.
The number of Coronavirus infections has just exceeded 200,000, more than doubling in the last two weeks. The governments are introducing travel bans, under which whole industries suffer.
The managing Director of Instinet, Frank Cappelleri commented:
“It happens so quickly that it is at the Moment almost too much to comprehend it. It is at the point where it is a relief when we test at night, the Futures and not went down.“
Some analysts expect that Bitcoin falls to $ 1,000, if the 3,000-Dollar mark is breached.
It remains to be seen whether Bitcoin can act as a safe haven, when the panic sets in, the markets are even more under pressure. On BitMEX on April 27. March and 26. June Futures over 5,200 $ traded, which shows that investors are still confident.
Sure is only, that at the Moment nothing is sure. However, even if Bitcoin is going to test new lows, it will be the first asset that is recovered when the panic disappears. This means that we can get BTC now at a discount price.