The outbreak of the coronavirus has had a major impact on the market, and cryptocurrencies have not been spared. Last weekend, the Fed was forced to cut interest rates to almost zero, but this did not help Bitcoin (BTC) to fall below $5,000.
Bitcoin (BTC) fell below $5,000
As the European session progressed, the cryptocurrency with the largest market value plummeted below $5,000 on Tuesday.After breaking the psychological milestone, it was almost close Fell more than $4,500, down 16% in one day. Similarly, other cryptocurrencies also experienced double-digit declines, with XRP, Litecoin (LTC) and Ether (ETH) falling by 15%, 16% and 18%, respectively.
Before the Fed’s announcement over the weekend, the BTC price rose and rose 14.33%, reaching a daily high of $5,940.This strong upward movement allows BTC to Break through the $5,070 to $5,520 range After the stimulus plan was announced, it began to fall back. The central bank cut interest rates and said it would buy $700 billion worth of national debt to help the market avoid a crash.
This move aims to eliminate market chaos caused by the impact of the coronavirus. However, after the announcement, Dow Jones futures fell by 1,000 points, which triggered a lower limit. This suggests that with the start of this week, major indexes such as the Dow Jones and the Standard & Poor’s 500 Index may give up last week’s gains.
Concerns about whether the central bank can prevent a recession
Other central banks such as Japan, New Zealand and Australia have also announced stimulus plans to reduce the possibility of economic recession. However, due to growing concerns about the long-term economic impact of national lockdowns, these interventions have not been able to prevent large-scale selling in the entire market. Despite all these interventions, investors are not confident that the central bank can prevent the economy from falling into recession.
The trend of BTC has always reflected the traditional market, so Arouse people’s attention to the concept of a safe haven. After the announcement, the coin rose rapidly, then quickly corrected and fell sharply.
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