Bitcoin (BTC) And The Crypto Market Face Three Narratives, As President Donald Trump Announces US-Europe Travel Ban
The crypto market continues to fall after the US President Donald Trump announced a travel ban between the US and much of Europe as a measure to try and contain the coronavirus.
He said that Europe did a pretty bad job after China was infected, and Europeans are the ones who took the coronavirus to the US. Now, most of Europe is banned from going to the US for at least a month.
This will go in effect today, at midnight.
Now, the crypto market looks even bloodier than yesterday, and more analysts say that we’ll be witnessing even more price drops.
The bearish narratives will continue
Analyst Jacob Canfield issued a new warning to crypto traders. He said that three bearish narratives might continue to hound Bitcoin and offer a true test of the status as a store of value.
The first scenario says that the ongoing economic fallout from the coronavirus is likely the number one factor that’s driving the crypto market selloff as investors reduce exposure to traditional assets as well as emerging markets.
Another narrative that may have an impact on BTC’s price is the potential hoarding of BTC from miners who are powering the network.
Canfield also pointed to multi-asset Fund Manager Charlie Morris, who explains why miners tend to avoid selling into a weak market.
The third scenario is that the PlusToken Ponzi scheme is also testing demand for BTC.
At the moment of writing this article, Bitcoin is trading in the red, and the most important coin in the market is priced at $7,507.56.
During the past few days, all kinds of bullish predictions about the price of BTC have been coming in, but looking at this surging global crisis, at the moment, it’s pretty hard to tell if they’re accurate or not.
We’ll have to wait some more to see where things are going, globally speaking.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.