The global stock markets yesterday marked the most bearish day since last August, cancelling the gains accumulated since the beginning of the year for the American and European markets. In contrast, the cryptocurrency market recorded earnings, driven by Bitcoin.
The fears of the coronavirus are affecting the world’s stock markets where uncertainties are usually seen in a negative way, to the point that investors are pouring into the safe-haven assets, and it is no coincidence that in the last few hours gold has returned to one step from $1,600 per ounce, recorded at the turn of 2019 and 2020, before falling back in recent weeks after the return of geopolitical tensions between the US and Iran, as well as the agreement reached on tariffs between the US and China.
At the same time, in the alternative finance of cryptocurrencies, the whole sector has been showing signs of a reversal of the trend for some time now. In the last few hours, the sector has made a further upturn and is returning to the levels of mid-January when prices peaked.
Looking at the main cryptocurrencies such as Bitcoin and Ethereum, the sector is back to the levels of January 18-20. Moreover, Bitcoin returns above the psychological threshold of $9,000, stretching up to $9,100 a step from the highs reached in mid-January, the highest prices since last November, beyond the peak of January 19th. These levels had not been recorded since the beginning of November 2019.
As usually happens, Bitcoin drags the sector: the day sees a clear prevalence of positive signs. Among the top 20, only one red sign emerges which is that of Dash losing 3%, although it should be mentioned that Dash had managed the descent better than the rest of the sector in last week’s downturn.
The best of the day today, among the big ones, are Ethereum Classic (ETC) and Cardano (ADA) who gain about 8%. EOS confirms yesterday’s and the weekend’s increases and today gains a further 6%. Bitcoin is also among the top five rises and is doing very well, with an increase of 4%. It’s an increase that in the night hours has gone over 9,100 dollars.
The best rise today is that of Nexo, a token that can be grouped in DeFi, even though Nexo (NEXO) provides centralized finance services offering interest and dividends to token holders. Nexo rises by about 15%.
Among the worst, besides Dash, there is Icon (ICX) which occupies the 53rd position and loses 5% from yesterday’s levels.
The market cap is back to the highs recorded in mid-January, just under 250 billion dollars. In the last few hours, volumes are rising again, although this should not be related only to the fears that are pouring into traditional markets. The trading volumes in the crypto market return to close to 100 billion dollars, this is due to the fact that, during the festivities for the Lunar New Year the stock markets are closed (considerably reduced if not absent), for this reason, Asian investors have moved to alternative markets that are always open. The rising volumes are therefore pouring into the market cap which returns to the levels of 10 days ago. The 250 billion dollars are the top reached last January 19th and not seen since early November 2019.
As for the dominance of Bitcoin, it remains just over 66%. Despite the recovery, it is the lowest levels of the month. Ethereum gains a decimal fraction and returns above 7.6%. Ripple is down to 4.1%.
Earnings for Bitcoin (BTC)
Bitcoin today recorded earnings of 4% and sees prices go to test the $9,100, a step from the top 9,200 registered last January 19th. After last week’s weakness, the prices are back up again, showing an upward trend that started from the December lows and confirmed by the rise above the higher lows recorded on January 3rd.
The trend will be confirmed if prices do not fall below $8,000 in the coming days.
Ethereum earns 2.5% and comes back to test the $175. A break of this level with the support of volumes will bring prices to the test of the dynamic bearish trendline passing just over $180.
The trend of Ethereum will remain firm upward if prices remain above $155, a level tested last weekend.
Ripple despite today benefiting from a generalized positive trend in the remains limited in the climb and gains only 1.3%. Ripple continues to show a long-term weakness, and unlike the first two, and the altcoins, continues to struggle to break the dynamic downward trendline that combines the decreasing highs from the tops of June.
This forces XRP to a long term bearish trend and highlights the weakness that grips the third crypto for capitalization