Bitcoin (BTC) continues to move in sync with US equities, acting as a risk asset. SolutionPresident Donald Trump on travel suspensionto the USA from Europe for 30 days, led to a decrease in the Dow Jones index by 1000 points, the S & The P 500 and Nasdaq 100 also fell sharply, CNBC reported.
Today, March 12, at the largest cryptocurrency exchangeBinance bitcoin paired with the stablecoin USDT reached $ 5,550, on Coinbase paired with a fiat dollar - $ 5,578. At BitMEX, it was at least $ 5,600. The last time it was at these levels was in May 2019.
As of 3:00 p.m., the cryptocurrency has rebounded by $ 500 and is trading with a wide spread between $ 6,000 and $ 6,500 on leading exchanges.
The chart below shows that the price drop was sudden, amid an impressive surge in trading volumes:
</p>Against the backdrop of what is happening, the cryptocurrency “index of fear and greed” reached a new low of 14 (“extreme fear”):
A sharp drop in the price of Bitcoin occurs against the backdrop ofcontinued collapse of traditional markets. Thus, the key European stock indices, the German DAX, the French CAC and the British FTSE 100, are declining by 6%. S&P 500 index futures are signaling the US stock market will open with a drop of more than 4.5%. The value of traditionally safe assets - gold, the Japanese yen and US Treasuries - is rising slightly.
The impetus for a new round of stock salesThe World Trade Organization acknowledged the outbreak of the coronavirus as a global pandemic, as well as the introduction by the American President Donald Trump of a ban on entering the United States from Europe. Investors continue to raise interest rates on the approaching crisis in the global economy.
</p>Trump's coronavirus travel ban announcementwas made apparently without consultation with the travel industry or US allies and seems set to cause massive disruption | Analysis by @stcollinson https://t.co/h4YykHyaQL
- CNN (@CNN) March 12, 2020
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