Following the massacre in global financial markets, Bitcoin’s price made a deep dive from USD$8100 to USD$3600 in just a few days. Despite this dramatic turn of events, there is still plenty of investor confidence. Max Keizer from RT predicts the price will be pushed up to USD$100,000 despite the global outbreak of COVID-19; Jamie Dimon, CEO of JPMorgan, will reportedly borrow from the US Federal Reserve to enrich his crypto inventories.
The upcoming halving is less than 2 months away. If historical performance is any indication, Bitcoin is still yet to reach its short term peak.
Cryptocurrency in relation to other markets
We selected some alternative investment markets to determine to what extent they correlate with the crypto markets. As we can tell, there was no significant correlation between BTC and other alternative investment. Correlation between BTC and stock market volatility is low this week.
Cryptocurrency Market Panic Index
Instead of using social media panic factors that are difficult to quantify, we calculate the BTC market panic index completely based on volatility. Based on the CBOE calculation method for the S&P VIX index, we use the near- and next-term put and call BTC options to calculate the VIX trend chart (The lower the VIX, the lower the market panic). As shown on both graphs, panic across BTC and ETH markets has been high.
Digital currency prices (2020-03-16 UTC 12:00)
News of the week
The number of investors who own 1 or more BTC has climbed, despite (or because of) the recent crypto market slump.
According to blockchain research company Glassnode’s recent report, the total number of wallet addresses of 1 or more BTC owners reached up to 795,630 (ATH) by 11th March 2020.
The report says such addresses increased by 60,000 since March 2020, whereas the value has doubled over the past 5 years. Since Bitcoin’s price took a hit, it is not strange to see more investors stocking up on Bitcoin. This also shows that the long-term view on Bitcoin is positive.
The market has been struggling for the past 59 days. The Halvening is very likely push Bitcoin back above $10,000 – potentially driving it further to hit the USD$100,000 mark.