The largest stock fall in the last hundred years followed the coronavirus outbreak in Europe. But stocks are not the only asset class that is now forfeiting. Cryptocurrency markets and even precious metals, which have long been considered a safe harbor for investors, are also bleeding.
So the question arose – Where the hell are all the money going?
Alex Sanders, head of Nuggets News, has followed the cash flow and is clear about it. Most investors resort to US ten year bonds (US10Y) – marked in blue on the chart.
Where's money going?— Alex Saunders (@AlexSaundersAU) February 28, 2020
It's clear money's going into US10Y bonds (Blue).
Money was going into Gold until recently (Black).
Bitcoin (Orange) continues to be dragged down with stocks (Green) at this point.
BUT, the stage is set for #Bitcoin to do it's own thing this weekend. $BTC pic.twitter.com/pZzgh225lK
This is a chance for Bitcoin!
While stocks and gold suffer from coronavirus, which, in addition to panic, is also a problem in supply chains and slowing down trade on Earth, cryptocurrencies are living in their own world and are declining because they have been practically growing since the beginning of the year. We haven’t had a good correction in the cryptocurrency market for nearly two months.
Over the past week, $ 40 billion has disappeared from this market, which is about 14%. Bitcoin lost approximately $ 2,000 (nearly 50% of previous growth) and could start growing in the coming days. Bitcoin can now shine and attract other investors who are mainly dealing with stocks or precious metals, or other traditional asset classes.
We have been consolidating on relatively strong support for three days. Most traders still expect Bitcoin to test $ 8,200, but if it does not break this level, the market will be ready for further growth.
However, Bitcoin still did not recover from the fall of 2018. If you zoom out the chart, you may notice that it has been in a downward trend for two years. However, this could change soon.