Market Update: Economists Envision Global Recession While Crypto Prices Soldier On

Last week cryptocurrency prices bounced around after a majority of coins dropped in value on August 21. Today on August 26, digital currency …

Last week cryptocurrency prices bounced around after a majority of coins dropped in value on August 21. Today on August 26, digital currency markets have gained around 1.52%, gathering $4 billion since the initial slump. Despite the volatility, cryptocurrencies have consolidated and a few speculators believe a breakout is on the cards that could send prices sky-high or plunge below the current support.

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Top Crypto Coins Slowly Move Northbound

On Sunday, August 25, the price of bitcoin core (BTC) gathered steam again after tumbling below the $10K zone. During the late evening trading sessions, BTC prices vaulted upwards $500 in a matter of minutes and many other markets also saw gains. Currently, the price of BTC is hovering around $10,342 per coin and there’s more than $17 billion worth of trade volume today. BTC’s market cap is $185 billion this Monday, which is 69% of the $267 billion dollar market cap of all 2,000+ coins.

Market Update: Economists Envision Global Recession While Crypto Prices Soldier On
Top 10 digital currency markets on Monday, August 26, 2019.

BTC/USD markets are up 2.27% today but are down 3.4% for the week. Following BTC is ethereum (ETH), which is up 0.5% today and down 5.3% over the last seven days. ETH is trading for $189 a coin and has an overall market valuation of about $20.4 billion. Ripple (XRP) is selling for $0.27 and prices have dipped in value over 3.8% in the last week. The fifth largest market valuation is held by litecoin (LTC) which is swapping for $74. LTC lost 3.9% last week but over the last 24 hours, LTC is up 1.61%.

Bitcoin Cash (BCH) Market Action

Bitcoin cash (BCH) markets have been holding steady and at press time one BCH is swapping for $309. BCH/USD is up 1.31% today but lost 4% over the course of the week. On Monday, August 26, BCH is the sixth most traded coin below EOS and above XRP with $1.37 billion in trade volume. USDT is the strongest pair trading against BCH with 56% of all global trades. This is followed by swaps with BTC (26%), USD (7.7%), ETH (6.4%), KRW (1.9%), and EUR (0.43%). The exchanges swapping the most bitcoin cash include Coinbene ($182M), Hitbtc ($70M), Okex ($50.4M), Digifinex ($46.6M), and Bibox ($38M). Bitcoin cash transactions in the last 24 hours were around 39,310 with a daily average this week just above 40K.

Market Update: Economists Envision Global Recession While Crypto Prices Soldier On
Bitcoin cash (BCH) spot price on August 26, 2019.

With a Possible Economic Crisis on the Horizon, Will BTC Act as a Safe Haven Asset Like Gold?

As the global economy shudders and prepares to embrace a looming recession, precious metal markets have rocketed while cryptocurrencies have seen lighter inflow. Some digital currency influencers are not so sure BTC is a safe haven asset right now. Speaking in an interview on the financial newswire Bloomberg, Spencer Bogart, a Blockchain Capital executive, is not quite convinced that an economic crisis is on the horizon. “When you think about really severe crises taking place, a liquidity crunch, another global financial crisis, I think that bitcoin will struggle to do very well from a price perspective,” Bogart explained. Despite the possible struggle, Bogart thinks in the “longer term bitcoin will absolutely be a safe haven.”

Market Update: Economists Envision Global Recession While Crypto Prices Soldier On
Bitcoin core (BTC) spot price on August 26, 2019.

In another interview on Nasdaq Trade talks, Nelson Minier, Kraken’s over-the-counter (OTC) lead executive, shared similar opinions. “I’m not so sure that it’s a safe haven asset yet, but I do think that it’s starting to act like one. I think that people are starting to portfolio manage, are starting to come in slowly. And when the market is getting shaky you saw Bitcoin rise, I mean, you wouldn’t see that before, it was trading like a risky asset,” Minier said. Just like Bogart, however, Minier remarked that BTC will likely fall into that category, stating “we’re heading that way for sure.”

BTC Price Reacts in Real-Time to Trump Trade War Tweets

On August 23, U.S. President Donald Trump told the American public that the trade war between the U.S. and China would continue to escalate. Immediately after the Trump tweets the price of BTC/USD spiked and well-known macro trader Alex Krüger noticed a chart milestone. “Today was the first time BTC reacted sharply in *real-time* to a Trade War breaking headline or USD/CNY fix,” Krüger tweeted. “As far as I can recall, this, in fact, is the first time BTC reacts in real-time to any event outside of crypto,” the trader added.

…Additionally, the remaining 300 BILLION DOLLARS of goods and products from China, that was being taxed from September 1st at 10%, will now be taxed at 15%. Thank you for your attention to this matter!

— Donald J. Trump (@realDonaldTrump) August 23, 2019

Similarly to gold, some speculators believe digital currencies can act as a safe haven asset in order to hedge against macroeconomic uncertainties. The tensions between the U.S. and China also made the price of gold jump more than 2.4% and the price per ounce of gold (Au) right now is $1,530.

Market Update: Economists Envision Global Recession While Crypto Prices Soldier On
Gold (Au) spot price on August 26, 2019.

Bitcoin Cash (BCH) Markets Still Indicate an Upward Trend

According to cryptocurrency price analysts, bitcoin cash (BCH) looks poised to break out northbound. The trader Mehak Punjabi explained on August 26 that the price of BCH may continue to rise higher and could target a price of around $330 per coin. “By comparing the price of BCH coin from its lowest value which was $283.29 on 15-Aug-19 at 05:00 UTC and the current trading price, BCH indicates a bullish trend by 10%,” Punjabi said. “The CMF indicator also reflects that the bitcoin cash price is indicating an upward trend. The 7-day high price of the coin $326.88 points the next target of BCH towards $330.” The analyst added:

Trading in the BCH for a long term will yield great returns and dividends.

Crypto Markets May Experience Extreme Economic Fallout for the First Time

Overall, most crypto supporters are still positive about the long term game but are still uncertain about the current period and whether digital currency markets will remain vibrant during a deep economic recession. Currently, the economies in Latin America are floundering and many countries in South America are dealing with severe inflation compared with the rest of the world. Economic growth in India is falling below average and the country’s Finance Minister Nirmala Sitharaman has plans to focus on priming lending and foreign funding. Moreover, Time reports that 34% of U.S.-based business economists are concerned that the U.S. will see a deep economic recession within the next two years. Most of the economists who participated in the National Association for Business Economics survey believe that America will see the economy tumble hard by the end of 2021.

Market Update: Economists Envision Global Recession While Crypto Prices Soldier On
Money flow into crypto on August 26, 2019.

With the macroeconomic uncertainty in the air and signs of distress, it is still hard to picture what crypto markets will do during an economic fallout. Bitcoin itself was born from the ashes of the 2008 economic crisis and has yet to experience a global recession of that magnitude. For now, with all the ‘doom and gloom’ happening worldwide, seeing a macro hedge spur from gold markets is normal. Despite over-exuberant optimism, no one really knows if cryptocurrencies such as BTC will act in the same manner if the global economy worsens. For now, it’s a case of wait and see.

Where do you see the price of bitcoin cash and the rest of the crypto markets heading from here? Let us know what you think about this subject in the comments section below.

Disclaimer: Price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”

Images via Shutterstock, Crypto Fear & Greed Index, Trading View, Bitcoin.com Markets, and Coinlib.io.

Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely.

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Market Update: Prices Drop as Crypto Sentiment Enters the Fear Zone

MARKET UPDATES | Jamie Redman

Cryptocurrency markets fell hard on August 21 following the $700 price drop bitcoin core (BTC) saw during the early morning… read more.

Market Outlook: Bitcoin Cash Spikes While Economic Fears Spread Worldwide

MARKET UPDATES | Jamie Redman

On Tuesday, August 13, most digital currency prices have dropped in value between 2-5% while crypto trade volumes globally have… read more.

Jamie Redman

Jamie Redman is a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written thousands of articles for news.Bitcoin.com about the disruptive protocols emerging today.

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Chinese cryptocurrency demand feeding off trade tensions, weaker yuan, market players say

That means cryptocurrencies are, in theory, an attractive vehicle for moving … Chinese investors have stayed active in cryptocurrencies despite the …

LONDON/NEW YORK – Trade tensions between the United States and China and a weakening yuan are boosting demand for cryptocurrencies among Chinese investors, market players from Asia to New York said.

Exchanges, researchers and brokers say they have seen an uptick in activity at cryptocurrency trading venues popular with Chinese. They said over-the-counter brokers, which act as middlemen for buyers and sellers, have seen much of the activity.

Measuring cryptocurrency trading volume in China or elsewhere is quite difficult.

While digital wallets used to send and receive coins can be tracked on the blockchain technology that underpins most coins, the geographical location of senders cannot. And the Chinese government’s 2017 ban on cryptoplatforms means there is little data on the sector in the country.

Still, the impact of the U.S-Sino trade war on China’s economy and its falling currency are driving some larger investors to shift money from the yuan to cryptocurrencies, said Andy Cheung, head of operations at OKEx, a Malta-based platform popular among Chinese.

China’s economy has been hit by simmering trade tensions between Washington and Beijing. Data on Wednesday showed the slowest growth for Chinese industrial output in 17 years, suggesting tariffs are impacting demand in the world’s second-largest economy.

And last week, China allowed the yuan to break through the key 7-per-dollar level for the first time since 2008, prompting Washington to label Beijing a currency manipulator and upsetting markets.

The yuan’s sharp fall on Aug. 5 coincided with a 7 percent gain for bitcoin and a 9 percent surge in cryptocurrencies’ market capitalization, leading analysts to speculate that some Chinese investors were selling the yuan and buying digital currencies.

“People worry about not just the yuan but the overall economy in China. We see a lot of internet companies freezing hiring, and they are actually laying off people already because of the trade war,” said Cheung, who is based in Hong Kong.

China maintains heavy capital controls, leaving few options for Chinese people seeking to move money offshore. That means cryptocurrencies are, in theory, an attractive vehicle for moving assets out of China.

Indeed, there has been a correlation between a weaker yuan and stronger bitcoin during times of lower volatility in cryptocurrency markets this year.

Mati Greenspan, an analyst at the eToro exchange, said as the U.S. dollar surpassed 7 yuan the venue saw significant increases in crypto and commodities trading, alongside a moderate drop-off in stocks and fiat currency volumes.

“Crypto assets saw a particularly pronounced spike on the day of the People’s Bank of China’s (yuan) decision: Volumes across all cryptos on eToro’s trading platform doubled from their levels a week prior, both globally and in China and Hong Kong,” he added.

Still, Greenspan could not say whether the buying came from Chinese investors.

Chinese investors have stayed active in cryptocurrencies despite the prohibition of exchanges. Most Chinese trading in virtual currencies has shifted to OTC venues, as well as WeChat groups since the ban, market participants said.

“We just know that there is a lot of activity, and for regulatory reasons it’s under the radar a bit,” said Garrick Hileman, head of research at digital wallet firm Blockchain.

Local OTC desks were seeing an increase of more than two times in Chinese trading volume over the past three months as trade jitters percolated, said Jehan Chu, managing partner at Hong Kong-based crypto fund Kenetic.

For individual investors, the motivation to trade crypto is also down to chances to make money via arbitrage between the yuan, the Hong Kong dollar, and Tether — a so-called stablecoin backed by U.S. dollars, market players said.

Digital currency research firm Diar said in a recent report that Tether flows into exchanges catering primarily to Chinese traders totalled $10 billion in the year to June, it said. Last year’s transactions were worth $18 billion.

“A lot of people trying to move capital in and out of borders try to use Tether as a medium,” said Anthony Wong of Hong Kong-based cryptocurrency investment firm Orichal Partners.

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Bitcoin Price Analysis – Will BTC Break Below And Head Sub-$10k?

Another potential reason could be Coinbase losing Barclays as a banking partner. It has been reported that there have been some withdrawal issues …
Bitcoin Price $9,954
BTC Resistance Levels $10,000, $10,400, $10,682, $10,525, $10,848, $11,000, $11,196, $11,473,$11,800, $12,000, $12,173, $12,500, $12,701, $13,000, $13,455, $14,000, $14,191, $14,500, $14,750, $15,000
BTC Support Levels $10,000, $9,800, $9,500, $9,477, $9,236, $9,000, $8,888

* Bitcoin price at the time of the writing.

has now seen a further -5.51% price drop over the past 24 hours to bring the price for the cryptocurrency down to $9,954. This latest USD/BTC price drop now brings the 7-day decline to a precipitous -15% – crazy!

Bitcoin remains ranked in the 1st position with a total market cap of $178 billion. Despite the recent turbulence, It still up by a total of 38% over the past 90 days. Some small positivity to take away from the latest price drop is that Bitcoin has now reached major support at $10,000 – which we can expect to hold. On the other hand, if Bitcoin continues to slice through the current support – we could be heading much lower over the next few weeks.

There have been many reasons put forward as to why Bitcoin may be falling now. In my own opinion, I believe this is largely a technical downtrend that was expected. However, the recent tension with China will likely have a large impact. China had recently devalued its currency, Chinese Yuan, against the US Dollar by up to 7%. The same day, Bitcoin started to surge. However, over the past few days, the tension between China and the rest of the world has eased which has allowed the Yuan to rebound again – the same day that Bitcoin started to drop.

Another potential reason could be Coinbase losing Barclays as a banking partner. It has been reported that there have been some withdrawal issues at Coinbase UK which could have caused some uncertainty within the market leading to the sell-off.

Furthermore, the SEC has continued to delay the upcoming ETF hearings – no surprise there. All the proposed ETFs have been pushed further back with the VanEck ETF hearing decision now expected during October 2019.

Bitcoin Price Analysis

Since my last Bitcoin analysis, we can see that Bitcoin continued to slide until meeting the expected support at the rising trend line. Bitcoin has been in a major battle in the attempt to remain above the support trend line as is proving successful – so far.

We can see that Bitcoin had even spike much lower but had managed to rebound at strong support provided by the 100 day EMA at $9,477. This level of support is further bolstered by the downside 1.272 Fibonacci Extension level which is located in the same area.

Bitcoin price short term prediction: NEUTRAL/BEARISH

The short term price prediction remains neutral/bearish. It is really bearish but I have included the “neutral” potential due to the fact that we are currently at major support. If the sellers continue to the breakdown below $10k the market will instantly turn bearish.

So Where Are We Headed?

If this is the case, we can expect immediate support to be located at $9,477, the support provided by the 100 day EMA. Beneath this, further support toward the downside is then located at $9,200 and $9,000. If the sellers continue to drive price action further beneath $9,000 – more support can be found at $8,800, $8,500 and $8,265.

What Are The Technical Indicators Showing?

The RSI has continued to travel beneath the 50 level as the bears remain in control of the market momentum. The Stochastic RSI is showing signs that a bullish crossover signal may occur which would send the market higher.

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Bitcoin turned down and fell by almost 7% to 10563 USD

The cryptocurrency appears on track to test the psychological support of … Yesterday, under a bearish impact, Ripple coin saw a drop from 0.3000 …
Bitcoin

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Bitcoin turned down and instead of edging higher fell by almost 7% to 10,563 USD as of 08:15 a.m. ET. The cryptocurrency appears on track to test the psychological support of 10,000 USD, as the daily chart moving averages and other key indicators have turned bearish.

At the current price, roughly 53% of the rally from the July 28 low of 9,111 USD to the August 6 high of 12,325 USD stands erased.

The recent rally coincided with the devaluation of China’s yuan (CNY). The People’s Bank of China allowed the yuan to fall beyond 7 per US dollar on August 5. On the same day, Bitcoin rallied 7% and rose to a one-month high of 12,325 USD on the following day, triggering speculation that the cryptocurrency is acting as a safe haven asset in China. However, the recent drop might also be associated with this, as the CNY appreciated by 0.26% yesterday and is reporting a 0.32% gain against the greenback on Wednesday.

Whatever the reason for the price drop, the cryptocurrency is now looking weaker than it did yesterday, although a drop to 10,000 USD could be preceded by a minor bounce.

Bitcoin price trend

Today, the Bitcoin under selling pressure, exhibiting a “Sell signal as it slides below 11,000 USD and currently trades at 10,563 USD. The coin has been on a roller coaster ride in the past 24 hours. The coin broke all its major support levels at 11,300 USD, 11,000 USD and 10,800 USD. The down stride has been easy and breezy, as the coin was well above 11,000 USD trading at 11,339.31 USD, yesterday. As observed, the coin has been sliding since then, which made it dip by 7.64% to trade as low as 10,472.09 USD.

Bitcoin price analysis

Bitcoin current trading price slips below its 10-day SMA of 11,473.54 USD by 7.8% but is slightly above its 30-day SMA of 10,566.23 USD by 0.03%.

A bearish crossover of the 5- and 10-day moving averages and a below-50 reading on the relative strength index (RSI) indicate the path of least resistance is to the downside. The moving average convergence divergence (MACD) histogram has also crossed below zero, confirming a bullish-to-bearish trend change.

The MACD of the coin is in the positive zone but with a bearish outlook as the signal line crosses the MACD line.

The RSI of the coin breaches the lowest extremity and is below 30 and is in the oversold momentum due to the bearish move.

So, the cryptocurrency looks set to test 10,000 USD. The outlook would turn bullish if and when prices print a UTC close above 12,000 USD. That level acted as strong resistance in six days to August 10.

If Bitcoin continues to slip even lower, it may end the year with a plunging outlook, whereas if it even takes a leap, it may close the year trading around 15,000 USD.

Crypto market recap

Crypto market is down on Wednesday with Bloomberg Galaxy Crypto Index, declining by 1.35% for the day. The total cryptocurrency market value declined to 279.375 billion USD.

Ethereum is down by almost 2% to 206.59 USD. The cryptocurrency wasn’t able to maintain its price above any of its EMAs during its dive earlier last month – a clear sign of bearish momentum. However, the price was able to break the key resistance level near its 100-day EMA around 220 USD last week. Unfortunately, it seems the downtrend is now back in full force, as Ethereum has once again dropped below all its EMAs. The 20-day EMA (red) is also close to crossing the 50-day EMA (green) to the downside – another bearish signal.

Ripple’s XRP declined by 1.25% to 0.2929 USD. Although the coin is struggling to maintain an uptrend against the US Dollar, as the coin is facing hurdles to steadily climb above 0.30 USD. Yesterday, under a bearish impact, Ripple coin saw a drop from 0.3000 USD to 0.2915 USD and bounced back.

Bitcoin Cash is among the few cryptocurrencies gaining against the US Dollar. The coin added 0.7% to 340.79 USD.

Litecoin and Binance Coin are down by nearly 4%.

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