Monex Crypto Market Weekly: March 20

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This post is a translation of the weekly cryptocurrency analysis by Block Insight, a wholly owned subsidiary of Monex Group (Tokyo, Japan). Monex is the parent of TradeStation Group.

Summary

  • Both equities and Bitcoin (BTC) rose 10% on the week after a large scale fiscal stimulus package was announced.
  • Investors will be paying close attention to BTC as price has now recovered back to a band of old support ($6,500 zone) dating back to November

Market Trends This Week

Bitcoin (BTC) rose 10% this week after a $2 trillion stimulus package was announced by the Trump administration. Both equity and cryptocurrencies rose sharply as support for the bill saw overwhelming sentiment from both sides of the political aisle. BTC and gold (@gc) started gaining momentum to the upside on Monday when the Federal Reserve announced it would purchase an unlimited amount of Treasurys and mortgage-backed securities to support the financial market.

The hash rate, a key measure of competition among BTC miners, stagnated. The stagnation in the hash rate likely was due to a slowdown global economic activity due to the Corona Virus. BTC prices did not seem to be too affected by this news.

Though BTC rose strongly on the week, volatility contracted. BTC formed an inside week (a phenomenon that occurs when the entire range is encapsulated within the previous week’s range). A price pause like this at a large area of resistance is not uncommon to see.

Bitcoin (BTC) is testing old support as volatility dries up and forms an “inside week”

This Week’s Topics

  • Utah-based CoinZoom to offer a Via (V) debit card, which will automatically convert cryptocurrencies to US dollars. (3/23)
  • US House of Representatives proposed two bills supporting the US economy which included recommendations to issue “digital dollars” to citizens. (3/24)
  • Russian cryptocurrency miners have benefitted from falling electric prices, as the oil price war drags on. (3/25)
  • A new report by the International Organization of Securities Commissions states that global Stablecoins may be subject to securities laws. (3/26)

Next Week’s Market Forecast

Sentiment in cryptocurrencies has turned for the better as global equities markets have stabilized following a worldwide effort by governments to stabilize their economies. After weeks of erratic price action, volatility in Bitcoin (BTC) subsided.

One possible catalyst for further upside in cryptocurrencies would be a stabilization of the hash rate. The hash rate, which has dropped 45% since the 2020 peak, is the measure of calculations that a given network can perform each second. If cryptocurrency miners can see larger profits again and the network stabilizes, investors will likely feel more confident purchasing crypto.

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