Main Statistics And News Compilation For The Cryptocurrency Market To Face The Alleged Economic Crisis
We continue to document the cryptocurrency market in these days of the beginning of a supposed crisis. For us it is not a supposed economic crisis, “it is a new opportunity or a new economic cycle”.
We are seeing that after a few years the market is recovering. The reason is easy to know. Many of the investors these days are looking for capital protection alternatives that in economic and technical terms mean protection assets: call themselves Gold, Bitcoin, Dollar, and etc.
But at the end of the accounts, the previous cycle ended and now we are facing new opportunities at half the price. That’s why always calling success is staying optimistic.
Exact Confirmation Of Cases
The number of COVID-19 cases outside China has now surpassed the number inside it. There are now more than 88,000 confirmed cases outside China’s borders compared to a cumulative Chinese total of approximately 81,000 as reported statista.
Despite the negative development, says statista, recoveries are still rising, particularly in China where drastic measures to contain the coronavirus have had an impact. On March 15 for example, it reported 16 new cases while at some points in February, it was reporting 4,000 new cases per day.
The number of recoveries worldwide now stands at just over 77,000 according to tracking by Johns Hopkins University.
Looking at the report, we believe that the media, local newspapers, reported and others are exaggerating too much with the spread of the virus. If we take out the statistics we can see that it only represents less than 1% of the world population.
So our question is: why so much alarm, and why did all the stock markets in the financial markets fall? Manipulations is the best word for explaining the real situation.
Trading Volume Hits New Highs On Sell-Off
Last week, digital currency trading volume reached near record highs amidst a deep sell-off as explains the last tradeblock.com report. On Thursday, March 12th, bitcoin trading volume soared to a 2 year high with more than 416,000 bitcoin changing hands.
The high easily beat out the second highest day which occurred on November 20th, 2018 when bitcoin, similar to this past week, experienced a sudden deep sell-off. In the figure below we diagram bitcoin trading volume over time across the leading global spot exchanges.
Similar to bitcoin, the second largest digital currency by market cap, ethereum, saw a deep sell-off on near record volumes. In the figure below we diagram ethereum trading volume over time.
USDC Market Capitalization Pushes Higher
Also, tradeblock.co says that the stablecoin backed by Circle and Coinbase, USDC, has seen a steady growth in its market cap over the past several months.
Over the past week, USDC’s growth accelerated as non-stablecoin digital currencies declined considerably.
Not only have market participants fled to cash, it appears digital currency traders also fled to cash like digital currencies, such as USDC, which allows them to easily sit on the sidelines amidst the heightened volatility. In the figure below we diagram USDC’s market cap over time.
USDC ranks as the second largest stablecoin by market cap and is supported by a majority of US based exchanges.
While stablecoins received considerable mainstream attention last year, regulatory hurdles have hamstrung recent efforts.
Facebook’s highly anticipated Libra stablecoin has gained limited traction with regulators as its offering has yet to materialize.
Holders Making Money At Current Price
According to IntoTheBlock’s and the last coinmarketcap report, “Holders Making Money at Current Price” widget data, 41.27% of Bitcoin addresses are still in the money based on the current price of $4,998. Despite the slump, we’ve been experiencing over the past week.
However, Bitcoin’s 36% price drop over the past week did lead to a decline of 21% in the number of addresses “In the Money” compared to that of the week before that.
This handy “Holders Making Money at Current Price” indicator assesses any BTC address with a BTC token balance, then calculates the average price at which those tokens were purchased and compares it to the current price of BTC (which in this case is $4,998).
An “In the Money” address is when the average purchase price exceeds the current BTC dollar value ($4,998). Conversely, an “Out of the Money” address is when the average purchase price is less than the current BTC dollar value ($4,998.2).
Discrete Emerging Funds
In the midst of all this alarm it is surprising how out of nowhere Bakkt raises $ 300 million Series B funding round as he explains on his official blog.
With such news we can only understand that the supply and demand of digital products cannot stop, much less a project of that magnitude.
The most of the case is that the FED (Federal Reserve) continues printing more money than it should to finance the markets that right now remain in extreme liquidation.
We have said before that printing more money will not solve anything, it will only generate more international debt and the term most hated by the economy: inflation.
However, to date it has already printed an additional USD $500 billion as an emergency fund.
Furthermore, we should highlight Binance’s initiative together with WazirX to support the Indian market with approximately 50M ‘Blockchain for India’ Fund to foster the growth of the Indian startup ecosystem. It really is an excellent initiative, recognizing the great difficulties that this market presents.
The Calculated Crash
In the midst of one of the bloodiest days in the crypto market, BitMEX, one of the largest cryptocurrency exchanges in the world, suffered a 25-minute outage as wrote cryptoslate.
The Mar. 12 outage sent the price of Bitcoin spiraling down to as low as $3,700, wiping out $1,800 from its price in a single day. According to data from Datamish.com, almost $1.2 billion in Bitcoin long contracts have been liquidated on Mar. 12.
Consistent with the above, the crash in bitcoin’s price last week has cast a shadow over mining companies, which have spent over USD $500 million on mining equipment renovation in the past six months, in preparation for the next halving of the network, as he made it known criptonoticias.
In addition, the Bitcoin hashrate is showing a notable decrease from the abrupt drop experienced by the price of BTC in the market last week, says criptonoticias, too.
The Bitcoin network, having exhibited a record hashrate of 149 exahashes per second on March 5, began to lose mining power a few days later; which coincides with the collapse of the crypto market.
Currently, the network shows a hashrate of 88 EH/s (the lowest in the last thirty days) after bitcoin fell below USD $4,700 yesterday, as it was reported.
Waiting For Some Confirmations
We will tell you the truth. At this point Bitcoin is not a good game to play. Basically times lower than the daily chart show signs of recovery. But we are mainly waiting for the price to start a Wyckoff re-accumulation phase for intraday within the resistance of the EMAs 9 and 21 between USD $6100 and USD $4820 approximately.
The breaking of the previous resistances could be the key point to open our long and declare victory. The positive of the case is that all the indicators show that Bitcoin for this time is oversold. That could draw the attention of investors in the short term.
However, it is good before taking any initiative to wait for the reversal on the weekly and monthly chart.
See you in the next story! With love 💛 Rubika Ventures Team!
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