This is a guest post from Voyager, a crypto brokerage firm with a commission-free trading app.
Ouch. There’s really no other way to describe this week. The Coronavirus, which seemed far from the U.S. just a couple weeks ago, has severely altered Americans’ everyday life. The NBA, NHL, MLB, and NCAA have canceled the remainder of their seasons. Airlines have slashed schedules. Schools have closed, cities are on lockdown, and celebrations across the country have been postponed indefinitely.
Global markets reacted to the virtual shutdown of economies, experiencing their worst week in decades. On Thursday, U.S. markets shed their biggest losses since the Black Monday crash of 1987, with the S&P 500 dropping 9.5%. European markets fell 12%, even with the Central Bank promising to buy more bonds to stimulate the economy.
Unfortunately, the Coronavirus chaos didn’t spare the crypto market. Bitcoin lost more than 37% this week and even traded briefly below $4,000 Thursday night. Ethereum, XRP, Litecoin, EOS, and nearly every other asset on Voyager also experienced double-digit losses.
The crypto sell-off surprised some investors, as Bitcoin has often proved to be uncorrelated to traditional markets. But, because of the intensity of the crash, investors were quick to sell their crypto, stock, and even gold holdings for cash. On Thursday, crypto exchange and derivatives platform, BitMex, saw more liquidations than any other day over the past year, causing the platform to go down for roughly 25 minutes.
Luckily, the crypto market was quick to rebound. At the time of writing, Bitcoin was trading above $5,000, up close to 30% from this week’s low, suggesting it may have found its bottom.
Even so, there are significant profits to be made in volatile times. History has taught us that those who stay the course and act with reason instead of fear will be the most successful. Voyager’s CEO Steve Ehrlich said it best in his letter to our customers, “Remember, stick to the fundamentals and never let fear drive your investment decisions. Always prepare, never panic.” Read the full letter here.
I know how trying and stressful these times are, but I also know that people are resilient and full of incredible strength. We will move beyond this crisis and life as we know and love it will resume. In the meantime, call your friends, family, and loved ones. Spread positivity, stay calm, and do something that feels good to you.
…Also, wash your hands while singing “I Will Survive” and listen to the advice of your local officials ??
Listen to:
Our good friend Scott Melker launched a new podcast this week, The Wolf Of All Streets! We’re proud to sponsor the podcast and can’t wait for you to hear all of his epic stories. Listen to the first two episodes here.
Read this:
Finance Magnates: Could the Coronavirus Be a Catalyst for Fintech?
CoinTelegraph: 2 Months Ago, Andre Antonopoulos Explained Why Bitcoin Would Crash
Coindesk: New Celo Alliance Has Same Aims as Libra – And Some of the Same Partners
Coindesk: Bitcoin Options Saw Record Volume of $198M Amid Recent Price Drop
The original Voyager post can be found here. You can earn $25 in BTC by signing up for the Voyager app and trading $100 (or use code SLUDGE25).
