on the crypto
Less than 48 hours ago, Ethereum World News had predicted that a Coronavirus-induced recession would be the biggest test Bitcoin (BTC) would face since its first blockade was mined in January 2009.
Further analyzing the current global economic atmosphere, based on the numbers with which yesterday ended, we find that Dow Jones has fallen by almost $ 2.000, the S&P 500 has fallen by over $ 200 and oil prices per barrel. they fell by more than 30%.
As a result, trading on major US exchanges was halted for 15 minutes due to the rapid decline rate of the S&P 500.
Bitcoin, Ethereum, XRP and all cryptocurrencies in red
Bitcoin has fallen below $ 8.000 and is currently worth $ 7,780. Ethereum is trading below $ 200 worth $ 194 with XRP stuck at $ 0,20. Most of the top 100 cryptocurrencies, according to Coinmarketcap, have lost between 5% and 15% of their value in the past 24 hours.
The total capitalization of the cryptocurrency market currently stands at 221 billion dollars, 40 billion dollars less than the levels observed on Saturday 7 March.
It could be worse for Bitcoin, Ethereum and XRP
Although Bitcoin's upcoming halving event is bullish for BTC and the entire cryptocurrency sector, the current global economic environment is such that Investors they may decide to completely avoid risky activities.
By further studying the historical performance of cryptocurrencies, we find that they fall into the category of assets at risk due to their excessive volatility, as evidenced by yesterday's market action.
This, in turn, means that things could get even worse before a recovery is seen for Bitcoin, Ethereum, XRP and the whole crypto market. However, by rereading the summary of Satoshi Nakamoto's Bitcoin white paper, we realize that BTC was built specifically to circumvent financial institutions.
The latter are at the heart of the stock market crash that we are witnessing right now. The current market turmoil will be the definitive test for BTC and for the entire cryptocurrency market.
Positive news about the Coronavirus could change trend
The increase in new cases of infection during a pandemic is known to follow a traditional bell curve. At the moment, global cases are increasing exponentially, although countries like China are finally showing a decreasing rate.
We are currently on the left side of the bell curve, and when we reach the right side it will mean that the definitive defeat of COVID 19 is near. With such news, both the stock and crypto markets are likely to begin to recover as the fear associated with the pandemic starts to decline in favor of positive news indicating a victory over the virus.
In the latter case, the main cryptocurrencies Bitcoin, Ethereum and XRP can finally start a turnaround.