Cryptocurrencies Remain Stable, As Global Financial And Oil Markets Plummet

The crypto sector seems to be normalizing amid the global market recession and oil price drop. While the market received a 16% blow, the three-month picture looks even more terrifying. Oil prices crashed from $67 in January to trade as low as $20 on March 18. The oil price plummeted with over 67%, which is a more significant price drop when compared to the world of cryptocurrencies.

Over the past 24 hours, the majority of the top-100 cryptocurrencies saw trading in the green. Bitcoin (BTC) recorder a 10% increase in its price, currently trading at $5,886.11. The altcoin leader, Ethereum (ETH)’s price, jumped over the 10% mark, with a price of $128 per ETH token. Ripple spiked over $0,15, currently trading at $0,154688.

One of the most significant price gainers are Dash and Zcash, with 25% and 17%, respectively. However, IOTA marked the highest price increase in the top-30, with a price spike of over 50%.

The total market capitalization jumped to $152,5 billion, which is an increase of $5 billion.

The increased interest in cryptocurrencies is in contrast with the current global market situation. The U.S. Federal Reserve announced further market stabilization measures by launching Money Market Mutual Fund Liquidity Facility (MMLF). The redemption-oriented facility is set to aid the redemption process for both individuals and businesses.

In the meantime, the New York Stock Exchange (NYSE) will close its trading office, due to one of the traders was confirmed to be infected with the new SARS-CoV2 virus, which paralyzed half of the world.

Oil price droppage further put stress on the financial system, with prices falling as low as $20 per barrel. The momentarily low has pushed the oil price down, forcing a closing to a 20-year time low.

However, crypto research company Chainalysis published a report for the Bitcoin market in March. Chainalysis reported a massive inflow of Bitcoin to exchanges from March 9 to March 13, with almost 320,000 BTC on March 13 alone. However, the even more significant amount of Bitcoin liquidations on various exchanges pushed the price per BTC to sub-$3,000 levels, which is the biggest price drop in seven years.

Chainalysis also predicted short-term crypto market stability, as the inflow and selling leveled for now. According to the researcher, the leading cause for Bitcoin’s price settlement after the turbulence of last week is the small amounts of BTC per single transaction.

“We saw transactions in the 10-1,000 BTC region, which isn’t such a great force to disrupt the crypto market for a long period of time. The majority of Bitcoin holders are holding their BTC stash, which consolidates the market”, Chainalisys reported.

However, the report didn’t predict a long-term turnout, as more and more retailers in the United States are closing down shops, and the business sector restructures to work at home. Furthermore, the restrictions for cross-border travels, have postponed or canceled the biggest crypto summits, which act as a catalyst for crypto investments.

“The increased inflow in the long term usually indicates increased price volatility in the crypto sector. Most of the price shifts will come from professional traders, rather than retailers, as traders move larger quantities of cryptocurrencies daily”, the report concluded.