Crypto Today: Bitcoin and stocks nosedive as gold takes off

Here’s what you need to know on

Markets:

The cryptocurrency market is in the red for the second day in a row. Bitcoin has not been able to reverse the losses that kicked in following the rejection at $10,000 on Sunday. At the time of writing, BTC/USC is exchanging hands at $9,553 after support at $9,600 was shuttered. The most-traded digital asset is in the negative by 1.16% on Tuesday.

Ethereum price is the worst hit among the top three cryptocurrencies. A 2.24% loss on the day has seen the price correct lower from $265.66 (opening value) to $259 (market value). An intraday high achieved is $266.19. Most likely, losses will continue in the current and next session especially if the prevailing bearish pressure stays intact.

Ripple price, on the other hand, is down 1.71% on the day diving lower from $0.2706 (opening value) to $0.2658 (market value). A strongly bearish trend suggests XRP/USD is not done with the downside.

Top 100 cryptocurrencies update

The best performing cryptos have been able to defy the widespread bearish pressure, in turn, posting gains. Centrality $0.1164 (14.98), Maximine Coin $0.0675 (9.07%), Tap $0.2012 (4.51%), DxChain Token $0.0021 (6.10%), THETA $0.1438 (5.92%), Mixin $276 (4.04%), and Qtum $2.51 (4.54%).

Chart of the day

BTC/USD daily chart

Market

Coronavirus fears mount in tandem with selloffs in crypto and stock markets

New Coronavirus infections continue to increase in parts of the world other than China. A report by The New York Times reveals that the outbreak is rising in parts of Europe and the Middle East. The increase is happening amid widespread selloffs in both the cryptocurrency market and the stock market. Almost 80,000 cases of infections have been reported in 37 countries while the death toll has hit 2,600.

Stock prices are falling in Asia for the second day in a row. Investors in the US and European markets are warry following the devastating slide on Monday.  At the same time, the crypto market is in the red led by Bitcoin’s drop from levels near $10,000 to lows almost touching $9,500.

Interestingly, traditional safe-haven assets such as gold as well as the US government bonds shot up significantly as crypto and stock markets flopped. Gold rose 1.7% to hit highs of $1,676.50 a troy ounce (a seven-year high). The rise in Bitcoin price in January was mostly linked to the Coronavirus and the US government killing of a top Iranian leader. There has been growing interest and speculation regarding the impact of geopolitical and economic unrest on digital asset prices. Many in the crypto industry might not agree with a comment made by Jeff Dorman, CEO of the Arca Funds, a crypto-based firm in Los Angeles:

It’s irresponsible for anyone to say that bitcoin is truly a safe haven. Look at how gold and Treasuries and equities react instantaneously to global fears. Bitcoin and digital assets live outside that workflow.

Industry

Strike to make Bitcoin lightning network user-friendly 

Bitcoin has lagged behind its initial goal of becoming a global payment network due to the long time it takes to process payments. However, the introduction of the Lightning network rekindled the hope of seeing BTC as an accepted medium of exchange. Unfortunately, Lightning is snappy and for this reason, attention is shifting to Strike, a new lightning app that promises to make lightning user-friendly.

Billionaire Warren Buffet is never owning Bitcoin

The chairman and CEO of Berkshire Hathaway is a known critic of Bitcoin and cryptocurrencies at large. He recently revealed to CNBC “I don’t own any cryptocurrency. I never will” despite Tron founder Justin Sun saying he gave the Billionaire some. He also assured the CNBC that “I don’t have any Bitcoin’ and added that, “Bitcoin has been used a fat amount to move money illegally.”

Regulation

US Congress set for its next crypto hearing in March

The United States Congress is gearing up for another cryptocurrency hearing in March. According to a notice released on February 21, the United States House Committee on Financial Services Subcommittee on National Security, International Development, and Monetary Policy will hold a hearing on “A Review of Domestic and International Approaches to Digital Currencies” on March 24 at 2 p.m. ET. However, the details of the hearing have not been released including witnesses expected and the subject of inquiry. Likely to be among the subjects if Facebook’s Libra digital asset.

Quote of the day

There’s certainly a bit of fear in the bitcoin market, but it’s not anything close to the panic we’re seeing on Wall Street today, with the clear flight to safety. Three percent is a very different figure for stocks and for bitcoin.

Mati Greenspan, founder of Quantum Economics