The crypto markets are once again in deep red territory.
Of the top 10 coins by market cap, Tezos is faring the worst, down 13.49% at $2.27 at time of publishing.
Bitcoin is down 3.43% at $7,643, according to CoinMarketCap. Ethereum is down 9.11% at $182.94 and XRP is down 7.22% at $0.1968.
Bitcoin, the leading cryptocurrency with a $139.6 billion market cap, is once again moving in tandem with the stock market, which posted another massive downturn, shedding 1,464 points or 5.8%.
As economic uncertainty deepens and recession risk rises, traders are tracking the timing of the market dive. Dow futures dropped 1,000 points immediately after US President Donald Trump announced a travel ban between the US and much of Europe, with the cryptocurrency market falling in unison.
Economist Alex Krüger says traders should now watch Bitcoin’s price carefully and forget the philosophical debate on whether it may emerge as a safe haven asset.
“Time to pay attention. Bitcoin is trading like a risk-on asset. Not a safe haven, but the exact opposite. Following stocks down – although ironically stocks are the ones trading like low quality shitcoins.
I said “Bitcoin is ‘trading like a risk-on asset’ not ‘Bitcoin is a risk-on asset’. For risk management reasons. It does not matter what it is, but what it is doing. Leave the philosophical discussion for another occasion.
Meanwhile, analyst Josh Rager is mapping out the short-term for BTC.
He says Bitcoin is likely to continue to slide down to the $7,200 range, where a bounce is likely.
“The Trump effect is taking place on the market after his news conference.
Bitcoin had a nice bounce in the $7,500’s, but it’s very likely price makes it way down to the $7,200’s – $7,300’s before another hard bounce I have bids staggered from the $7,300’s down to $7,100’s.”
