Coingape - 3/23/2020 5:15:08 AM - GMT (+0 )
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.Bitcoin Dominance over Crypto Market (TradingView) 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.Binance Ethereum Wallet Balance (Source)
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.Total Cryptocurrency Market Capitalization (TradingView)
Nevertheless, in a state where human intervention and interaction is to be minimized, Blockchains can provide effective solutions. The chances of immediate adoption and implementation, however, are bleak.
Which blockchain and crypto applications are likely to aid this lock-down? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com