Time To Panic
Bitcoin and Gold Have Every Reason To Panic
The financial market can be very exciting and in a way entertaining. There are days when it
leaves a good part of the world smiling, and there are other days when nobody can explain the
chaos they see in the market. Yesterday, was a good example of the latter.
Well, yesterday’s movement in the stock, commodity, and bond market saw the yield on the 10
year US Treasury bond drop below 0.5%. This was the first time the market had observed such a
heartbreaking figure. The take away from the fall is that investors are pulling out their assets
and are looking for safer havens
Following the chaotic drop yesterday, two of the safe harbors behaved in two distinct manners.
Gold prices looked unfazed by what is happening all around it. The prices maintained a flat
figure of $1.673 per ounce all through the day, despite reaching historic high figures of $1,700
the previous night. Generally, Gold is enjoying a favorable March, despite the emergence of the
novel COVID-19 (Coronavirus), with the commodity currently up by $5.6%.
While Gold is smiling at the backdrop of varying markets, Bitcoin (BTC) is facing downtime. The
premium cryptocurrency is down 13% in 48 hours. This is its lowest figure since a January low of
The drop-down in price have left lots of people scratching their heads. Brian Armstrong, the co-
founder of Coinbase, was quick to express his shock in a tweet.
“Surprised we’re seeing the Bitcoin price fall in this environment, would have expected the
Nevertheless, there is still hope. If there is one thing Bitcoin prices have shown over the years is
that in there is a positive price movement waiting behind negative price drop.
BlockTower co-founder Ari David Paul, also mentioned that despite the price drop in the last 30
days, Bitcoin remains up 7.5% year to date.
At the start of the day, Tony Stewart, a derivatives trader mentioned in a tweet that the options
skew indicator rose astronomically over the past 7 days. The words of Stewart, the skew
indicator, is a measure of potential risk in any market.
There is more to come
Analysts fear that the financial crisis could worsen in the coming weeks. Dennis Dick, head of
markets structure and proprietary trader at Bright Trading LLC, mentioned the effects of actions
market could have a cascading impact on future markets.
"There is potential that we could be at the start of a financial crisis part two… It’s a possibility
right now that wasn’t on the table until we had this oil plunge over the weekend.”
The entire crypto market has taken a significant hit in the past 24 hours. Ether (ETH), Bitcoin
Cash (BCH), and Litecoin (LTC) have dropped 8.86%, 7.72%, and 10.42% respectively. Currently,
the entire crypto market cap sits at $222.2 billion.