Bitcoin is at risk of collapse when the IMF warns of the worst recession in 90 years

Bitcoin is oversold, bottom right before your eyes

Over the past few weeks, both the S&P 500 index and the cryptocurrency market have shown signs of recovery. However, with the worst crisis of the global economy due to coronavirus effects, experts predict the crypto market will likely continue to fall deeper in 2020.

The cryptocurrency market may set a new bottom in the future

The cryptocurrency market has been largely influenced by the Covid-19 pandemic when economies around the world closed down to protect themselves. Many people think that this is the perfect storm for Bitcoin to shine. Cryptocurrency advocates often advertise Bitcoin as a safe haven when there are instable events around the world, such as trade wars or tensions in the Middle East, or a pandemic like this. .

But this time, the scale of the global economic downturn seems too large to be put on the shoulders of any market or any economy. IMF has declare that this is the worst economic crisis since the Great Depression. European nations are also preparing to face the toughest time since World War II. Meanwhile, the US - the world's most powerful economy - has lost 25 million jobs. in just 4 weeks, that number took a decade to achieve.

In addition, Bitcoin's correlation with the stock market has reached an all-time high in history. This has negated (at least temporarily) the idea that BTC can become a safe haven asset.

This correlation is absolutely not a positive signal when economic experts consider that the world financial market will be subject to many fluctuations in the near future. And when this happens, it is certain that the cryptocurrency market will not be able to stay out of the overall downtrend of the market, as investors rush to withdraw capital.

In addition to the global macro factors that bring a gloomy picture to the market in the near future, it is the intrinsic factors of this market that no one can be assured.

As reported, the price of Bitcoin traded on the CME platform has appeared a gap at $ 3500, and the usual trend is that BTC will try to close this gap, thereby giving the possibility of a copper price. This money will be brought to the threshold of 3000 USD.

Of course, CME alone is not strong enough to trigger a price adjustment. But with the gloomy outlook of the general economic picture, nothing can be sure that the most difficult time of the market has passed.

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According to Coin68 / Bitcoinist
Recompiled ToiYeuBitcoin

About My name is Nguyen Manh Cuong. I was born in a poor village in Ba Vi district, HA NOI province - windy and sunny land. Currently. Mr Cuong.
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