Saying these markets are crazy would be an understatement. It doesn’t matter what assets you hold, a lot of people are feeling pain right now. The only safe haven seems to be cash.

Just the other day The Fed held an emergency meeting to cut interest rates to 0%, lowered bank reserve requirements, and QE of 700B. Unfortunately, debt is at an all time high right now. From student debt to small business to our government, we are in unprecedented times. The Fed is running out of tools which begs the question whether the US dollar will retain its current position as the world reserve currency.

Bitcoin’s narrative is changing faster than you can confirm a transaction on chain. Shifting from a non-correlated hedge for global uncertainty to a non-seizable asset, many question whether Bitcoin can provide a benefit during a time like this. With the halving less than 2 months away the blockchain’s security budget (mining reward) will be cut in half which could lead to a drastic decrease in hashrate for the network thus making the network less secure.

Last week Ethereum underwent one of its toughest tests to date regarding DeFi protocols. MakerDAO’s Dai broke its peg on the dollar to the upside. Currently Dai is trading in the range of $1.05-$1.15 so it’s great if you hold Dai but not so great for the overall system. MKR holders are voting this week to reduce the interest rate and DSR on Dai to 0% to incentivize Dai creation and to reduce the Dai surplus within the system.

It’s anyone’s guess as to what will happen next but COVID-19 has definitely proven to be a global test on financial markets and our current healthcare systems.