The Capital
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The Capital

How the U.S Fed’s Unwinding Save the Cryptocurrency Market?

23rd March — 27th March Cryptocurrency market analysis

US stocks

On 25th, as the White House and Congress reached $2 Trillion Stimulus Deal, which sends direct payments and jobless benefits to individuals, and the S&P 500 had its biggest daily gain since 2008, rising more than 9 percent.

While a coronavirus stimulus package could ease the economic pain and set the stage for a recovery, it’s clear that the U.S. has entered a severe recession virtually overnight. “This is not a time to be heroes calling a market bottom, but we are keeping a close eye on indications of light at the end of the tunnel,” said Lauren Goodwin, economist and portfolio strategist at New York Life Investments. We are still expecting for a follow-through day to signal a potential new stock market uptrend.

A-shares

The People’s Bank of China issued 10 billion yuan ($1.41 billion) of six-month bills in Hong Kong on Thursday, the central bank said in a statement on its website. The bill was priced with a coupon of 2.19%, and international institutional investors including central banks participated in the deal, according to the statement, having shown the confidence of foreign investment in Renminbi assets.

Risks in cryptocurrency market

The world’s largest blockchain network by market capitalization adjusted its mining difficulty around 3:00 UTC on March 26 to 13.91 trillion (T), down from 16.55 T in the previous cycle recorded on March 9. The drop in so-called mining difficulty signals some inefficient miners have shut off to escape from further losses, as a decline in the cryptocurrency’s price has made this activity less profitable.

Opportunity

As the central banks had already reduced the interest rate to a minimum, with the result that states around the world are forced to allocate billions to save companies in crisis. Most Latin currencies, especially Argentinian, Venezuelan, Turkey, and Iran suffer from hyperinflation. Will bitcoin be able to counter it, or has it lost this ability? Maybe the answer will be revealed within the next few months.

On Friday, Binance announced its plan to release an everyday crypto-backed Visa debit card. The Binance Card App account will be released soon, allowing users to deposit BTC or BNB from their account. The new payment method offers people an option to hedge against a loss of fiat value during the crisis.

BTC

Currently, the bears are defending the $7,000 level while the bulls are attempting to keep the BTC/USD pair above the breakout level of $6,450. A bullish revival can be expected if the price can be pushed above $6,900, which will open the door to stronger gains toward $8,000 in the near future.

ETH

Ethereum is almost in the same situation as Bitcoin. Ethereum price upside movements are limited by the trendline resistance at $140. Moreover, a break above the trendline resistance, the hurdles at $140, could give ETH/USD a kick into the trajectory above $160.

HYN

The price of HYN coin was slightly reduced this week, and the current price is maintained at around $0.066, which is building at the bottom and may start to rise at any time.

Disclaimer

The information in this analysis is personal opinions only and is not investment advice. Please do your own research before making any investment decisions. Cryptocurrency investments are volatile and high risk in nature. Don’t invest more than what you can afford to lose.

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