Bitcoin Down as Stocks Fall Over European Coronavirus Fears

Coronavirus has disrupted a running economy and the fear of loss and life has led to haphazard conditions and fears among investors, businessmen and multinational companies who invest a lot in bitcoins and cryptocurrencies. Bitcoin has been facing tremendous selling pressure due to the fear rising from the corona pandemic affecting globally. The stocks fall and that is leading to an unbalanced condition of the financial sector.

Due to these recent changes and the panic created by the coronavirus disease, there have been a few changes in the stock market of the European economy which is also affecting the US economy directly and in turn globally. Some of the major eye-catching incidents are:

The consequences of coronavirus fear

Prominent European indices like Germany as DAX, France as CAC, and the U.K. as FTSE fell more than 3%, due to this sudden rise of the pressure in selling out bitcoins and assets. There has been a steep decline of the European stocks and the U.S future stocks along with a rise in the worth of the US dollar which is way more than the top cryptocurrency market cap.

Bitcoin is currently trading in the “red zone” which is very alarming. It was near $10,650, down by 2.9% in a day. They have already failed to cross the level of $11,000 earlier. The data and the figures are very alarming for the economy which is actually having a large impact over the global economy.

One important reason for the falling of the equities is the fear of the recent increase of the corona cases” in the European nations which are hitting directly not in their favour. This surging incident is forcing equity holders to sell their portions and in return, Europe is about to hit the surface once again and that is alarming.

The no of corona cases is doubling every single day and if this continues, it will touch around 50,000 cases/day by mid-October. This data is received from British government officials. This certain crisis has changed its way of working again and some European countries like Greece and Denmark have already imposed a lockdown again. If this situation continues, ye European countries will be bound to impose lockdown all over again, resulting in a jolted economy.

This is creating new damage to the European economy in a whole new way in which the intern is risking the whole global economy by unbalancing the American economy.

According to the data sources from Glassnode, recently, 784 BTC which is worth approx $8 million was transferred from miner wallets to exchange wallets. This is quite higher than the
“30-day average” of the daily-outflow of 265 BTC. This movement of the coins to exchanges is done specifically to liquidate the holdings of the miners and investors. There is a possibility of a breakdown, a bearish-pattern is found on the hourly-chart. This might expose the “100-day average support” near $10,400. The falling value of the bitcoin economy has affected the dash for the US dollar which is a global reserve currency.

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