Bitcoin trades over 6k while traditional assets get economic stimulus

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This Week’s Summary

The Crypto Market ends the week at a total market capitalization of $169 billion

Bitcoin recovers from the Covid-19 blow and ends the week trading above $6,000

Ethereum restarts its ascent towards the $135 resistance level

XRP ends a rough week to trade again at around $0.15 on Sunday

Governments everywhere announce economic stimulants to prevent entire industries from complete shutdown

Covid-19 spreads further and forces many countries to put their citizens under forced quarantine

Crypto Trends 16th – 22nd of March 2020: PERFORMANCE & ANALYSIS

The last week saw the crypto market going through ups and downs again as the global pandemic continued its rapid spread. The good news is that most digital assets began to diverge from traditional equities, and started trading again in the green towards the end of the week.

After a rocky Monday that saw its value drop to $4,583, Bitcoin regained momentum and experienced a steady rejuvenation throughout the week. It was the first time since the Covid-19 epidemic shook the financial markets that the most popular crypto in the world began diverging from other assets.

Unlike traditional assets, Bitcoin is not regulated, so it started having fewer negative reactions to fear-induced news. Furthermore, the announcements made by several governments across the world of their support for the markets with economic stimulants led to a steady ascent that continued up to Sunday morning. At the moment, BTC is trading at $6,050.

However, the recent weeks of intense volatility have taken their toll on Bitcoin’s present value and future form as well. The news that a lot of miners have temporarily shut down their equipment to save costs means that the upcoming halving may not take place in April. Instead, the month of May looks like a more suitable time for the long-awaited event.

The rest of the altcoins followed Bitcoin’s trajectory. Ethereum began the week trading as low as $105, but it regained its vitality and surged towards its current value of $127.53. It is now bouncing back towards the next resistance level at $135 and avoiding the support level at 120.

Ripple’s XRP is now trading at $0.152. However, throughout the week it struggled with intense volatility and bounced back and forth between $0.13 and $0.17. The next resistance level is at $0.161, while the lowest support level is at $0.136.

What’s in the News?

A private Italian bank enables Bitcoin trading for its 1.2 million clients

The U.K’s financial regulator, the Financial Conduct Authority (FCA), warns against potential cryptocurrency scams related to the CoronaVirus

Binance donates $1 million to blockchain education in South Africa as it prepares to enter the local market

Several countries impose forced quarantine and ask their citizens to remain homebound in a bid to stop the Covid-19 pandemic from spreading so quickly

Next Week’s Market Forecast

In the upcoming week, the cryptocurrency market will be looking forward to more positive news coming from government subsidies and economic stimulants. Any form of support for the traditional financial markets will benefit the crypto market as well.

Cryptocurrency investors will be on the lookout for new opportunities that may arise from the ongoing pandemic and its influence on global markets. So far, the lack of any safety nets around Bitcoin and the other altcoins have benefited the industry, so they can hold up alone to further disruptions.

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