Interdax’s overview of the cryptocurrency market, including fundamental metrics for bitcoin (BTC) and ether (ETH), technicals and sentiment.
Coronavirus continues to take a heavy toll across asset classes, including cryptocurrencies. Many European countries have closed their borders and encouraged their citizens to quarantine as the outbreak begins to take its toll on the continent.
Correlations between stock markets and Bitcoin reached new highs last week although it seems to have de-coupled somewhat in recent days.
The 90-day correlation between the S&P 500 and BTC reached a high of 0.58 on March 14th as a market-wide sell off depressed asset prices. “Black Thursday” also saw liquidations force BTC as low as the $3,850, with the crypto-asset experiencing its second largest drop in a single day. Ether saw its worst daily performance since inception.
As a result of falling prices, inflows into exchanges increased substantially as traders/investors went short or sold off their crypto-assets for cash. Because of the sharp moves in the market, the Ethereum network became congested and had an adverse effect on DeFi player such as MakerDAO. The average gas price increased by a factor of 10 and this is bourne our by the table above, which shows an almost 50% jump in average fees on the Ethereum network.
On Sunday, the US Federal Reserve cut interest rates by 100 basis points and introduced a $700 billion package to buy treasuries and mortgage securities, which should be a positive, long-term fundamental for bitcoin given its rules-based, algorithmic monetary policy.
Read more here:
https://medium.com/interdax/weekly-market-report-march-17th-5edfac5f516?source=friends_link&sk=e804a589d686f7b031dd927e0284388c
