The main Wall Street indices suffered a severe setback at the end of the week, averaging 4% drops. In addition, oil sank just over 3%, as if it weren’t enough, gold lost 1.3%. Given this apocalyptic scenario that has been unleashed with the Coronavirus pandemic, we ask ourselves the following question: Is it a good time to buy Bitcoin in this crisis?
How did the main indicators close the week?
The main index of the United States, the Dow Jones, closed on Friday with a drop of 4.06% to 21,636 points. For its part, the Nasdaq technology index plummeted 3.79%, maintaining for the moment the barrier of 7,500 points.
In the old continent the pandemic does not give up, as does the collapse of its main stock market indices. The Spanish stock market closed with a negative balance of 3.63%, away from 7,000 points. For its part, the German stock market lost 3.68%, losing the psychological barrier of 10,000 points.
The good news is that the cryptocurrency index, Crypto 10, which in addition to following Bitcoin, has in its list the main cryptocurrencies in the ecosystem, advances about 4% in the week at the time of writing.
Another no less important fact is that oil (Texas barrel) continues to free fall, maintaining for the moment the key support of $ 20. In the graph below you can clearly see the collapse of the WTI in March:
One of the quintessential asset shelters is gold, which also closed in negative territory, down 1.3% to $ 1,630.
We are in a moment where traditional financial markets accumulate constant losses. But as I always say, money moves somewhere, it doesn’t just disappear.
Is buying Bitcoin in this crisis the best option?
Bitcoin has had a very volatile behavior since its birth, but especially since the Coronavirus pandemic broke out. Without going any further, on March 12 the BTC posted its annual low at $ 3,900, then quickly recovered to $ 7,000.
At the time of writing, Bitcoin is trading at $ 6,200, down 3% in the last 24 hours. Its volatility is undoubtedly very high, but … Isn’t Wall Street volatile?
In the graph below you can see the behavior of the price of Bitcoin in the last month:
Oddly enough, at the beginning of the month, Bitcoin was trading above $ 9,000. Everything seemed to indicate that nothing stopped him until 10k, but the Coronavirus put a brake on him.
Answering the title question: Is it a good time to buy Bitcoin in this crisis? Personally, I think that we are in an unbeatable time to hodl in Bitcoin, since sooner rather than later it will once again be a store of value asset.
We are in a historical moment of humanity, where great powers of the world are seriously affected by the Coronavirus. Financial markets are mercilessly sinking, with a third of the planet in quarantine.
The global recession is an enigma that even the wisest of economists cannot predict how far it will go. All this sets up a perfect scenario for Bitcoin to be the great winner.
What do you think, is it a good time to buy Bitcoin? Let us know in our Twitter CryptoTrend survey.