Everything Around Crypto
Bitcoin
$10,761.19
+18.13
(+0.17%)
Ethereum
$355.38
+1.84
(+0.52%)
Ripple
$0.24
0
(+0.41%)
Litecoin
$46.09
+0.07
(+0.15%)
EOS
$2.58
+0.01
(+0.51%)
Cardano
$0.10
+0.01
(+7.42%)
Stellar
$0.07
-0
(-0.14%)
NEO
$21.16
+0.18
(+0.86%)
NEM
$0.12
-0
(-0.09%)
DigitalCash
$68.44
-0.73
(-1.06%)
Tether
$1.00
0
(0%)
Binance Coin
$26.00
-0.17
(-0.65%)
QTUM
$2.36
-0.05
(-2.1%)
Verge
$0.00
0
(0%)
Ontology
$0.66
-0.03
(-4.19%)
ZCash
$55.71
-0.87
(-1.54%)
Steem
$0.17
0
(+1.74%)
EUR
$1.10
0
(-0.08%)
GBP
$1.23
-0.01
(+0.67%)
JPY
$0.01
-0
(+0.14%)
CHF
$1.03
-0
(+0.45%)
CAD
$0.72
0
(-0.17%)
AUD
$0.66
-0.01
(+0.94%)
ZAR
$0.06
-0
(+0.36%)
RUB
$0.01
-0
(+0.81%)

‘Trump Effect’ Fails to Save Bitcoin From Mass Carnage

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The ‘Trump effect’ failed to boost investor confidence in traditional markets today, however it did provide some temporary relief for Bitcoin. The lead crypto enjoyed a ‘nice bounce’ to the $7500 region but quickly went on to shed $1300 rapidly in the space of a few hours.


Bitcoin Bounced on the ‘Trump Effect’

Following U.S. President Donald Trump’s second-ever Oval office address in response to the coronavirus, the markets promptly plummeted.

The Dow Jones Industrial Average closed Wednesday 20% below its February high. The Blue-chip stock index plunged more than 1,400 points, officially ending its 11-year bull run and pushing it into a bear market.

It seems that the president’s attempts to soothe a concerned nation failed to bolster investor confidence. The billions of dollars in tax relief and plans to support businesses with low-interest loans and create “$200bn of extra liquidity” went down like a led balloon.

Still, the promise of printing trillions of dollars to pay social security benefits and sick pay temporarily worked in Bitcoin’s favor.

Blockroots co-founder and crypto trader, Josh Rager, pointed out that the ‘Trump effect’ had given Bitcoin a “nice bounce in the $7500s.” However, he pointed out that it looked likely that it would be short-lived. If only he had a crystal ball.

BTC Now Down 15.29% YTD

At the time of tweeting, Rager stated that it was “unlikely” the price would fall to as low as $7200-7300. If it fell below $7200, it would wipe out all gains made year-to-date. Who could have known that less than 24 hours later, the number-one cryptocurrency that started 2020 with incredible momentum, would be registering YTD losses of more than 15%?

As BTC pierced the $10k threshold earlier this year, top analysts confirmed that Bitcoin was back in a bull market calling for end-of-year prices of $40K. Some extreme optimists even said its price would be worth as much as $400k in the near future.

Yet, all that looks decidedly uncertain as we plunge into a new bear market.

The cryptocurrency markets are more correlated to the stock markets than we thought. And as the coronavirus is officially deemed a pandemic by the WHO it seems that for the short-term at least, there are no safe havens to be found.

Do you think Bitcoin will slump below $6K or break back over $7K soon? Add your thoughts below!


Images via Shutterstock

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