Crypto Bounce Could be a Dead Cat Bounce After Catastrophic 50% Crash
By Lorenzo - 2020-03-14
Bitcoin and the rest of the crypto market suffered the worst sell-off in history. Yesterday most cryptos saw a 40% or more price decline within hours, price action that continued during this morning and took Bitcoin to a low of $3,782 on Binance and a low of $3,596 on BitMEX.BitMEX, in fact, suffered a crash itself which basically locked users out of the exchange leaving them unable to trade or cancel orders. The current crypto price action is closely following the traditional stock market which has suffered just as much.The DOW Jones also plunged 10%, its worst drop since 1987 and the rest of the stock market followed suit. The narrative about Bitcoin being a safe haven is getting absolutely destroyed although Gold has dropped down too. XRP has also suffered and dropped down to $0.11 on Bitfinex and $0.101 on Binance, levels not seen since early 2017. Similarly, BNB dropped below $10 for the first time in over a year.Most altcoins are now experiencing a bounce, something quite expected after such a huge drop. This definitely doesn’t mean the market is recovering and bulls should be extremely careful. The fears surrounding the coronavirus outbreak are increasing and many countries are already taking drastic measures. It is unlikely for the outbreak to stop any time soon which means most markets will continue to tank. The Feds actually injected around $1.5 trillion into the stock market in an effort to stop the current massive sell-off.