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The entry ban imposed by America a few days ago is causing unrest in the financial markets. Bitcoin and many Altcoins cannot escape the shock effects of this decision either. We look at the state of affairs and possible consequences we can expect for Bitcoin.

Bitcoin down, Altcoins fall deeper

The proclamation of the American travel ban has left deep scars in the financial world. Bitcoin and Altcoins are not escaping a fall in prices either.

What do we expect for Bitcoin?

The opening of the European stock exchanges was also lower due to the news, but at the time of writing, share price declines on stock exchanges were relatively easy. AEX quotes - 6.27% and the Dow Jones and S&P 500 each lose about 4.5%. Although the size of the market makes this much more impact than the Bitcoin loss, this is not expected to generate huge interest in Bitcoin.

Does Bitcoin benefit from Altcoins?

The decline of the Altcoins is much more dramatic. This is because in times of crisis many people try to consolidate in the reliable crypto coins. As a result, relatively many people are moving their crypto holdings from Altcoins to Bitcoin and the price drop is being attenuated in this way. In addition, Bitcoin is also seen as a 'save haven'. This is also becoming more and more literal, as many organizations warn of the danger of Corona contamination by cash.

Does chain reaction cause further declines?

At several coins we see sharp, unexpected declines in exchange rates. This means that the pledge value for option trading has suddenly fallen and this will undoubtedly result in liquidations of the portfolio. As a result, the supply will increase and a further price drop is to be expected.

Buy the Bitcoin dip?

Although the long-term outlook remains favourable, such a price fall makes many investors uncertain. This offers opportunities for more daring investors, as they may now be able to buy cheaply. On the other hand, the rapid developments that follow may lead to impulse reactions. For example, European industry (and perhaps the government) will undoubtedly react to the US announcement. Further declines cannot therefore be ruled out. Here too, with a longer investment horizon, you will suffer less from these shock effects and prices may recover in the longer term. Of course it will always be your own decision whether and how you trade in crypto coins. We will gladly continue to provide you with information and prices.

Of course, such a market also has winners. For example, this investor recorded a return of more than 8 million percent. This uncertainty also makes the road easier for hackers, so it is wise to keep your crypto coins safe.