Bitcoin price tanked to its lowest level since May 2019. In addition, the Dow Jones approached its worse trading session since the market crash of 1987 when it fell -22%. Global fears have investors rushing to the gates. Liquidity has become an issue in the market due to investors selling their assets for cash. Due to the liquidity constraints that existed, the Fed announced a $1 + trillion injection into the financial system during Thursdays trading session.
Bitcoin Price
Bitcoin price has fallen -22% the last 24HR as investors are rushing for liquidity. Cryptocurrency investors have turned to their digital assets due to the liquid markets in assets like Bitcoin, Ethereum, and XRP. Bitcoin price fell to $6,000 levels, a level it hasn’t breached since May 2019. Many investors have now begun to question Bitcoins infrastructure during global uncertainties. Right now investors are looking for straight liquidity ( cash ). The problem with digital assets is that there are inefficiencies around liquidity. Yes digital assets like Bitcoin can be converted to fiat quickly, but the time it takes for that fiat to reach their financial entity is a whole different problem depending on the exchange withdrawal limits. With this being said, more cryptocurrency selling might be going on than intended to cover potential long term conflicts.
In addition to Bitcoin price, other altcoins have fallen sharply during the last 24 hours:
| Bitcoin | -22.80% |
| Ethereum | -27.70 |
| XRP | -21% |
| Litecoin | -27% |
| EOS | -26% |
Dow Jones Gets Crushed
As discussed above, the Dow Jones recorded its worst single-day trading session since the market crash of 1987. The Dow Jones fell -2,300 points which continues to shock investors on a global basis. As Visionary Financial has mentioned in a previous report, this comes at the worst time for the baby boomer generation. Many individuals in this age bracket are approaching retirement. These people also went through 2008, and simply don’t have the same time horizon they used to. You are seeing many older investors exiting the gates right now as they simply don’t have the risk appetitive to experience a recession. In addition to the Dow Jones, the S&P500 recorded its worst day since 1987 as well, dropping nearly -10% on the day.
Federal Reserve Pumps 1.5 Trillion Into Financial System
Mid-day, reports surfaced around the Federal Reserve and the move they were taking to easy global sentiment. The Fed announced that they would inject up to $1.5 trillion into the financial system for asset purchased. The Fed has continued to step in recently, looking for any way to calm the storm. After the Fed announced the news this afternoon, the markets had a +300 point correction, but tanked shortly after. The markets reaction to the Feds move was very concerning, and it will be interesting to see how world futures look tonight at 6:00PM EST.
Coronavirus Fears Continue
As mentioned in a report last night by Visionary Financial, Coronavirus fears accelerated on Wednesday when the World Health Organization labeled it a “pandemic.” A handful of developments followed that announcement such as the NBA cancelling their season and Italy locking down a majority of their operations and businesses. Today, none of the news got better. It was reported that Major League Baseball was halting spring training and pushing back opening day. Also in sports, it was believed that NCAA would end up cancelling March Madness basketball tournaments.
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