Bitcoin and most altcoins sold off tremendously Wednesday as global fears continued to shock the world. President Trump met with the leaders of some of the largest Wall Street banks on Wednesday and also held a press conference later in the day to address Coronavirus, which has now been labeled a “pandemic” by the World Health Organization.
Bitcoin and Altcoin Price Sentiment
A majority of the cryptocurrency markets fell sharply during Wednesdays trading session. Bitcoin price recently dipped below $7,500 which was labeled as a strong support level in recent analysis. Bitcoin price was showing some life yesterday as the digital asset was approaching $8,000 levels. It could not maintain the upward momentum and ended up selling off with the rest of the market after shocking developments Wednesday around Coronavirus. During the last 24 hours, cryptocurrencies have been bleeding out as global market turmoil continues. The image below displays how the digital asset markets have been performing the last 24 hours:
Bitcoin & Cryptocurrency Price Catalyst
Bitcoin has struggled to find a bottom during financial turmoil. Despite Bitcoin price doing pretty well during normalized markets in terms of being a “global hedge” historically, it’s not been able to take that approach in 2020. As more and more investors are seeking liquidity, Bitcoin has struggled to prosper into a hedge asset in 2020. Coronavirus continued to create global chaos today as numerous developments hit the market.
World Health Organization – Earlier on Wednesday, the World Health Organization ( WHO ) had no option other than to finally classify Coronavirus as a “pandemic.” Some investors thoughts this was already potentially priced into traditional markets, but that was far from the truth. The stock market took a huge hit on Wednesday, with the Dow Jones dropping nearly -1,500 points. The labeling of Coronavirus as a “pandemic” was big news, especially since the World Health Organization hasn’t applied this label since Swine Flue in 2009. Coronavirus outbreaks have now jeopardized nearly 114 countries and have resulted in over 4,000 deaths.
NBA Cancels Season – The craziest development to surface on Wednesday was the NBA deciding to cancel its season. This initiative was executed after a Utah Jazz player tested positive for Coronavirus. With the amount of contact in basketball, the league thought it was the best decision to shut down operations. Along with players, owners were shocked as well. According to a report, Mark Cuban ( Mavericks owner ) couldn’t believe what he was witnessing, but understood where it was all coming from. Mark said that “It’s really not about basketball or money,” Cuban said. “If this thing is just exploding to the point where all of the sudden players and others have it, you think about your family.”
Italy Coronavirus Chaos – One other market catalyst was the developments in Italy. Last week, Italy started off by locking down a quarter of its population, but the outbreak continued to spread. Today, Italy was literally locking down everything. In addition to people, the prime minister was ordering businesses to shut down. Entities such as restaurants, bars, stores, salons, and cafes were ordered to lockdown operations for the time being.
Bitcoin Price Tanks Post Trump Speech
After a brutal day in the stock market with investor sentiment vanishing, President Trump held a press conference around 9:00PM EST. Trumps biggest announcement was issuing a ban on travelers to the U.S from Europe for the next 30 days with the hopes of slowing down the outbreak. Markets were not impressed and neither was Bitcoin Price.
Bitcoin started tanking during & after the press announcements by Trump. In addition to crypto markets, world futures also started to tank. President Trump talked about assisting small businesses with capital and liquidity to assist during difficult times. He was also in the process of convincing Congress to provide payroll tax relief, which was not set in stone yet. The announcements by POTUS was not convincing enough to investors. As mentioned above, futures took a nose dive and Thursdays trading session appears to be a blood bath. At the time of this report, Dow Jones futures are down over -1,000 points.
Bank Executives Aren’t Worried
On Wednesday, POTUS also met with executives from some of the largest banks. Banks in attendance included Bank of America, Citigroup, Wells Fargo, and others. Among the executives, the narrative was that they were all prepared for the environment right now. Most executives praised Trump for his work so far and were happy with the positions the banks were in. Most bank executives mentioned that the economy was in great shape right now and that they were fully capitalized to deal with any issues that came to surface. No bank executive at the meeting believed the economy was heading into a recession.
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