The Great Corona Scare
The fiasco started at 14:00 UTC on February 19. From then on, the price of BTC fell below $ 9,000. Just an hour later, the BitMEX exchange saw the largest liquidation since the new year, surpassing the $ 100 million markThe derivatives market reflects a massive sell-off within the crypto spot market. Bitcoin’s price fell over 6% and hit a low of $ 8, A main reason for this market decline, which conventional markets are also suffering from, is the fear of the corona virus. Dow Jones Industrial and the S&P 500 saw a 7% decline over the week.
Bearish markets all the way
BTC’s recent price action continues to show bearish results, although the notion that crypto can act as a safe haven is pushing ahead. It appears that the average investor does not see crypto as a safe bet on bond and equity uncertainties.
Luke Martin, a research analyst for crypto, explained that Bitcoin is not next to any form of other assets. According to Martin, should the shares fall, this does not mean that crypto will automatically increase. He also compared Bitcoin to gold and found that gold’s ups and downs don’t trigger an automatic response in the crypto industry either.
Massive downward fictitious volumes
BitMEX was not the only one to feel CORVID’s fears – 19 virus. OKEx saw an increase in the notational volume in the options market, which was well above the million dollar mark 15. This is the largest increase in the history of the stock exchange.
The fictitious volume describes the value of the underlying assets on the derivatives market. This can mean the total cost of a position, an agreed amount within a contract, or the value that a person controls.
An enormous amount of fictitious volume when it comes to the downward price signals a declining overall market movement.Things are not looking good as the world tries to sell off all of its assets that cannot be turned into finance quickly. It seems everyone is very afraid of this new virus outbreak. How it will turn out in the future remains unclear.