We are continuing to see a slight drop in the value of the Bitcoin today. However, today shows that Bitcoin is not tied to the dollar, oil price or anything else. Bitcoin is a free-standing cryptocurrency that can hold its own weight. In another massacre where we saw the oil price drop over 12% and the dollar racing against other European currencies the Bitcoin is down to around 5400 USD. This is of course much lower than what we saw at its peak, at around 20000 USD.
Bitcoin has shown today that it can hold itself over 5000 USD for now, but that it is having a tough time breaking through or stabilizing at 5500 USD. If you are a day trader of cryptocurrency it might be a tough day to make the choice to buy. However, are you a trader that sits long, now might be the time to investigate how long you can sit and at what cost you can start picking up Bitcoins. In the big picture, we are looking at a price four times less what we saw at its peak.
Most countries around the world are pumping money into the economy in an effort to restart the financial markets. The U.S. Federal Reserve delivered an emergency rate cut of 100 basis points early Monday. The Feds also announced new quantitative easing in the form of at least $700 billion in asset purchases. We have also heard much talk yesterday and the day before about helicopter money, where President Trump would send out as much as 1000 USD to every American. That would be part of a $1 trillion stimulus program.
These talks of efforts and efforts seem not to work quite yet. The stock market is falling, and many say we are heading into a recession. The corona virus is not helping causing too much panic among investors and no place to hide. Looking at the current exchanges there are no obvious stocks that sticks out as safe heavens. Instead, investors are flocking to the dollar.
It is therefore hard to predict when the value of the Bitcoin will stabilize and can again be a place for investors to place value. The global economy is seeing a double crisis in the virus placing the world economy in a global lock- down, as well as the oil price war between Russia and Saudi-Arabia over market shares is flooding the market with too much oil. The combination of these two crises are causing a huge liquidity squeeze in the market leading to a shortage of cash being placed in Bitcoins, and instead pulled out of the markets. That said, Bitcoins are a great alternative to the markets when the stocks are being out of control. Bitcoin is currently consolidating, showing indecision in the marketplace.
See the list of websites where you can buy Bitcoin: Coinmarket.no/buy-bitcoin/