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Bitcoin and gold heading to $ 1,000 for Coronavirus


They have been difficult days for world markets. The effects of Coronavirus are not only being felt in health, but the economy is also being affected by the slowdown caused by the disease. A consequence that could bring the value of two of the world’s most important value reserve assets, gold and Bitcoin, to as low as $ 1,000.

The permanent collapse of the markets

Since last week, the economy is facing a true global financial crisis. This after the main stock exchanges in the world have suffered at least 5 days of absolute collapse in their price. This caused the growth generated over the years to disappear in a matter of minutes.

This has generated a crisis of confidence among investors worldwide, who do not trust traditional markets to place their capital. As a consequence, their decline becomes even more acute, as they see how the world’s major investors emerge from them, reducing the demand for their financial products.

But the most interesting phenomenon of this collapse has been, without a doubt, the fall in the price of assets considered as a store of value: gold and Bitcoin.

Since the beginning of the crisis, these two assets have seen their price hit, in the face of a market that does not even trust a traditional refuge in uncertain times such as gold.

How deep can the fall be?

However, despite having witnessed such radical variations in the price of these assets, such as Bitcoin’s 50% drop in value in one day, we may not yet have witnessed the end of the financial debacle of reserve assets. value.

In fact, voices within the markets warning against a possible drop in both BTC and the ounce of gold to $ 1,000.

This is the position of the investor Peter Brandt, who through his Twitter He commented that if gold fails to sustain resistance at $ 1,300, it would fall inexorably to $ 1,050. A drop that could even worsen and lead the precious metal to trade in the three figures

A similar situation to the one faced by Bitcoin. Well, the usual volatility in the cryptocurrency market has worsened in recent days as a result of the advance of the Coronavirus.

As a consequence, the virtual currency has faced constant ups and downs that do not allow us to speak of a trend maintained over time. So a catastrophic drop in price is on the table.

The fall of gold and Bitcoin has been sharp from the start. Source:
The fall of gold and Bitcoin has been sharp from the start. Source:

This risk of total collapse in the market of two value reserve assets helps us to realize the magnitude of the challenge facing world markets with the Coronavirus.

Something that, at a time when a cure for the disease seems distant, could get worse and worse over time. What makes this our Today’s Data here at CryptoTrend.

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