Bitcoin Failed to Cross the $10K Mark and Creates Fear

So, what happened in global financial markets over the past week? Let’s take a look at the top gainers and losers, as well as some of the trends we see.

It’s been a crazy week so we’ll jump right in!

Since early May, Bitcoin has failed to cross the $10K. On 11th June, after a drop to $9,100 a sideways trend began which also generated some fear in the market. The Bitcoin (BTC) price has now reclaimed the $9,300 price point and some traders expect increased volatility in the coming days.

On a macro scale, global markets appear to have lost some of the momentum gained over the past few weeks. U.S. stock markets took a tumble on Wednesday with the Nasdaq losing 2.2%, the S&P 500 losing 2.6% and the Dow Jones Industrial Average falling 2.7%. These losses wiped out almost all of the gains from the preceding weeks.

In addition to the U.S. stock market, international crude prices also took a nosedive on Wednesday morning, falling more than 5%. Most investors have cited the “second wave” as the reason, with many countries including China, Latin America, and the U.S. reporting a surge in cases.

Coming off these developments, the International Monetary Fund or IMF, decided to re-evaluate their global economic prediction. Previously, the organisation had predicted that global GDP would shrink by 3%. On Wednesday, June 24th, the IMF revised that number to 5%, stating that coronavirus was causing an “unprecedented decline in global activity”.

While things may look grim right now, overall we could see global financial markets continue to recover as global lockdowns are lifted.

Conspicuously unaffected during these traditional market shifts are digital assets such as Bitcoin. Grayscale investments have added 18,879 BTC to their Bitcoin Trust since last week, taking the total to 53,588 BTC since the halving. At the same time, Bitcoin miners only produced 7,081 BTC since last week. Grayscale is also stocking up on Ether – their ETHE fund currently owns $396 million in Ether. We should continue to see large growth in these sectors over time, and the team at Overbit is prepared to offer services to cater to this unique audience.

Of History:
Today in financial history Bitcoin’s price is approximately $9,200USD, while only 3 years ago, in June of 2017, Bitcoin ranged from the prices of $2,000–3,200USD. This represents an increase of over 300% in prices.

Did you know?
Financial Derivatives are over 10,000 years old. If you want to learn more about the history of financial derivatives, it’s quite fascinating, just check out this in-depth review aptly titled “ The History of Derivatives”.


Latest Company Update: 26th June 2020
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