Due to the current state of emergency there will be a daily summary of the most important developments around the coronavirus from now on.
The developments of the last 24 hours
The corona virus is now dominating everyday life and is causing a gradual slowdown in public life. The USA, Italy, Austria and Spain have already declared a state of emergency. And in this country, too, the corona panic is becoming increasingly noticeable. Clubs, restaurants and now also schools: A large part of all meeting places are being closed in order to stop the spread of the virus.
German borders closed
The uniqueness of the situation requires increasingly drastic measures from the Federal Government. After Poland, Denmark and Czechoslovakia have already closed their borders, Germany is also sealing itself off, at least temporarily. The crossing is now only open to commuters and freight traffic.
Emergency loans guaranteed
In addition, the government has already promised financial support to companies and promised unlimited loans in the face of concerns about a prolonged economic slump. Thus, companies that are directly or indirectly affected by the effects of the pandemic will be granted interest-free loans.
FED reduces key interest rate
Moreover, central bank intervention is currently witnessing a historically unprecedented level of intervention. In addition to the ECB and the Bank of Japan, the Federal Reserve Bank (FED) has now also taken drastic measures and lowered the key interest rate by one percentage point to a corridor of 0 to 0.25 zero percent. The world's largest central bank is thus firing heavy ordnance in the hope of calming the stock market and giving the economy new impetus. Similar to the financial crisis in 2008, the Fed is now trying to slow down the consequences of the corona panic for the economy with a 700 billion US dollar bond purchase program and emergency loans.
DAX and gold price, the effects
As can be seen from the DAX, the markets are far from having recovered from the corona panic: The DAX was at 9,232.08 before the weekend, but opened the week at 8,728.48 and currently stands at 8,540.09.
The situation is somewhat better for gold, but no recovery is in sight. Last week ended at $1,529.71 and the new one opened at a slightly recovered rate of $1,562.16. Since then the gold price has had to give way somewhat and is currently at USD 1,536.57.
Bitcoin: Technical Analysis
The big crash is behind us, but you can't really talk about a real bounce for a long time. The Bitcoin exchange rate was able to rise above 5,000 US dollars again, but has been moving sideways since then. Accordingly, the indicators are indecisive: The MACD is still deep in negative territory, what can be said about the RSI. The Aroon-Down-Indicator is also very high. The oversold RSI and the Aroon-Up indicator, which is also very high, stand in the way of a truly bearish assessment.
Ethereum: Ether price (ETH) down by half
The sell-off in the markets hit the ether price particularly hard. Within one week, ether lost around 50 percent of its value and is currently quoted at 108 US dollars. Such a price development was last observed for the second largest crypto currency by market capitalization in December 2018, during the onset of the crypto winter. Although the ether exchange rate was able to stabilize above the 120 US dollar mark over the weekend, the price of the crypto-currency is still in the doldrums. However, a renewed downward trend was already evident in the Monday morning hours.
Firmly under control by Corona Panic: XRP
The XRP price is also being dragged down by the market turbulence. While the price was still briefly quoted at USD 0.16 on Sunday evening, it fell again without further ado to USD 0.14. Thus, the XRP price had to drop by almost 30 percent within one week.
IOTA: Price down 15 percent
The crypto-currency from IOTA also has to struggle with severe price slumps. The IOTA exchange rate is currently quoted at 0.11 US dollars and has lost around 15 percent in value in the last 24 hours alone. The wave of panic triggered by Corona has the entire crypto market firmly in its grip and is leading to severe price losses, the end of which cannot be foreseen at present.
