Crypto market and coronavirus: March results

Yuri Mazur, Head of CEX.IO Broker Data Analysis Department, analyzed the current situation in the cryptocurrency market and shared with BitCryptoNews his forecasts about its future prospects.

Current market conditions

The cryptocurrency market continues"storm" and in the last week of March, the Bitcoin rate fluctuated in the range of $5900-$6760. The coin reached $6,800 for the first time in recent weeks, but then slowly rolled back to $6,700. 

Several factors influenced the strengthening of the position of the digital asset: 

• technical, judging byAccording to the daily charts, BTC is entering a phase of increasing value, and the bearish trend will gradually change to bullish; 
• market, an increase in investor interest in cryptocurrencies in general, and bitcoin in particular, as well as a slight increase in buyer activity.

If you analyze the exchange rate movement, you cannote the increased demand from retail investors who, taking advantage of the moment, purchase coins at reduced prices on the eve of halving. At the moment, it cannot be said that institutional market participants are now actively buying crypto assets. 

Although digital currencies remain quitevolatile, but today there is a trend where even large players are taking a closer look at cryptocurrencies and are beginning to consider the possibility of investing in them. Against the backdrop of a decline in traditional markets and possible hyperinflation, digital assets can be used as an alternative investment tool. 

The effect of coronavirus

If we talk about March as a whole, then this monthturned out to be the most difficult  for the crypto market since the beginning of the year. The coronavirus epidemic, which covered the whole world and led to a fall in stock, commodity and currency markets, has been pretty battered and has not spared the crypto market. In March, Bitcoin dropped to a minimum of $3,800, but by the end of the month it was able to recover almost half of the lost value. 

The decline in the price of military-technical cooperation had a negative impact onaltcoins. Due to the massive sale, the decentralized finance market experienced a real shock: users began to withdraw assets en masse, which led to a lack of liquidity and many positions had to be liquidated. 

Bitcoin remains the main driver for altcoins, respectively, they repeated the downtrend. Despite the current signs of recovery, the growth picture is rather vague for them.

Further perspectives

In April, the world as a whole is forecast to worseneconomic situation. First of all, the OPEC+ agreement will probably cease to apply, which means the price of oil may drop even lower. At the same time, the coronavirus epidemic will approach its peak. All this will lead to a further decline in the global economy and, as a consequence,  affect the cryptocurrency market. 

Military-technical cooperation is still clearly correlated withthe S&P500 index, which reflects the general sentiment in the market, but it continues to fall. Today the price of the main cryptocurrency reached $6900. And although Bitcoin has recovered almost half of its value since the last large-scale fall, the rate remains quite volatile and, perhaps,  further there will also be periodic decreases. However, as we see, military-technical cooperation has serious potential for further growth.

As for altcoins, their behavior on the marketdirectly depends on the rate of the main cryptocurrency – bitcoin. Over the course of the week, leading altcoins rose and fell in the range of 3-5%. This  the market is still very unstable and volatile. Although American analysts believe that in the near future top altcoins will strengthen in price relative to the BTC and the dollar, Yuri Mazur does not share their point of view: 

“The altcoin market in Russia remains weak, and I don’t yet see any really promising and strong projects other than ETH and XRP.” 

As for forecasts, wait for globalThere is no need for changes in the market. Until the panic stops and the global economy begins to recover, we should not expect an increase in prices for cryptocurrencies. Most likely, the price of military-technical cooperation will fluctuate between $6600 – $6900, until it can confidently overcome the resistance level of $7000. 

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