Cryptocurrencies have dropped sharply in the last 24 hours. Investors have withdrawn from risky assets due to the rise in tensions between the American-Chinese trade war.
The United States has now raised prices On Chinese imports at rates as high as 245% on imports due to its reprisal actions and added new limits to flea exports.
Trump would have urged China to initiate commercial talks saying that the United States does not need an agreement. However, China replied that the United States had to stop using pressure and threats if it really wants to solve the problem through negotiations. “”For any dialog box to occur, it must be based on equality, respect and mutual benefits,“” Chinese Foreign Ministry spokesman Lin Jian said said.
The United States had previously imposed a rate of 145% on Chinese imports, while China responded with a 125% rate on American products.
Bitcoin and wider drop in the market
Bitcoin dropped by more than 2% in response and the wider market of cryptography dropped by 3.75%. The stock markets were also affected because the term contracts on the NASDAQ 100 fell by more than 1% and the S&P 500 term contracts dropped by 0.65%. Although Bitcoin has remained relatively stable during previous sessions, the panels suggest that his recent Bull Run could slow down. It is currently negotiated at $ 83,826, down more than 2% in the last day.
In addition, Bitcoin fell below its simple 200 -day mobile average on March 9, which often signals major trend changes. According to Institutional coinbaseThis decision suggests that the sharp drop in Bitcoin marks the start of a new bear market cycle that started at the end of March itself.
Is the Haussier market finished?
Coinbase Institutional Coinbase Research, David Duong, said that key performance metrics adjusted to the risk called Z-SCORE indicates that Crypto Bull Run probably ended in late February. The market has since evolved laterally or bullish not lower, but neutral.
However, cryptography prices have resisted relatively well. A merchant at Market Maker Wintermute believes that this stability gives traders more confidence to use protective strategies such as coverage. Consequently, certain leading brokers have gone from prudence to neutral on risk assets. The upcoming market movements will probably depend on real economic data.
Macro factors
Key economic data is expected to be published this month, including a Fed Chair speech today where investors expect information on the next rate reduction decision. Meanwhile, the uncertainty of risk assets has pushed investors to safer assets such as gold, which is now increasing more than 26% this year, while Dollar has dropped by 9%. Gold has also reached a new record of $ 3,300 per ounce in the middle of American China tensions.
Analyst Ali Martinez recently sharp Bitcoin is consolidated in a channel, and as the level of support of $ 83,200 lies hard, there is a good chance that it can bounce and go up to the middle or the top of this range. It remains to be seen if Bitcoin will withdraw or drop.