As the world continues to battle the spread of the deadly Coronavirus, the economy is witnessing a huge down-turn as well. All assets including Gold, the last resort for safe-haven, is also seeing a decline.
While many argue that Bitcoin was created for a time like this, the altcoins are looking towards further sell-off due to associated risks and lack of adoption.
Bitcoin dominance over the crypto-markets is now above 66%. On a daily chart, the levels are now testing 200-Day moving average as resistance. In the past a break above 200-DMA has further accelerated altcoin sell-off.
Ethereum Balance of Binance Wallet
The Ether [ETH] wallet balance of Binance Exchange is currently around 68,228. We can see a decline in the Ethereum balances of Binance exchange wallet. This is showing characteristics of bear trends similar to September 2019 – December 2019 and previously during the bear market in late 2018 as well.
This likely to affect the liquidity on exchanges which will eventually cause further slow-down in the market.
Moreover, due to lock-downs of large sections of the world economy, the start-ups are likely to take a hit as well. The cryptocurrency industry is rather small with the larger players comprising mostly of exchanges and few other developing organizations like Block.one, Ripple and so on. Hence, the shutdown will affect the financial and developmental aid to the new projects.
The socioeconomic conditions around the world are extremely fragile at the moment. Last night, the US President deployed the National Guard in the 3 US states, stating that the world is currently battling a war-like situation.
The total market capitalization of altcoins is currently $53 billion, a break and close below $45 billion could lead to further downtrend in alts.