Today is something of a mixed day for cryptocurrencies. Bitcoin – the world’s leading cryptocurrency by market cap – has ultimately taken a few steps back and is now trading in the $9,100 range, when just yesterday it was circling around $9,200.
Bitcoin Is Falling Back While Stocks Move Up
Prior, it was trading at an even $9,400, so it appears some of the bullish marks that have been hitting the currency as of late are beginning to take a rest.
Bitcoin was potentially on a path to shutter past its previous level of resistance, which stands at $9,500. This level was hard to breach for the coin (again), which arguably resulted in the fallback for the world’s top cryptocurrency.
In addition, global indicators suggest that bitcoin is in danger of being oversold. The last time we saw this was during the midway point of last month, and the currency was experiencing a slight dip then as well, so this recent fall of a few hundred dollars seems to make sense.
The currency’s price also seems to have correlated with fears surrounding China’s new coronavirus, a deadly disease that has thus far, taken the lives of more than 400 people. Nigel Green – chief executive officer of deVere Group – explained:
The ongoing upward trajectory of the price of bitcoin correlates to the spread of the coronavirus. Bitcoin’s price is likely to continue to rise until the coronavirus peaks.
Well, it looks like that fear is starting to subside. News has arrived that the stock market has seemingly jumped more than 400 points over the past few hours given that the scare and hype surrounding the virus have begun to shrink down. Whenever stocks do well, it looks like bitcoin tends to do poorly and vice versa. Thus, now it looks like BTC is taking a short break while stocks get their day in the spotlight.
China’s stock market has also opened for business again for the first time since the Lunar New Year. Prior, stocks had plunged nearly ten percent and the yuan – China’s national fiat currency – was in a serious rut when compared to entities like the U.S. dollar. Now that China is getting back on track, perhaps bitcoin is considered “not as necessary.”
Tezos Is on the Warpath
Other currencies, however, such as Tezos (XTZ) are surging at the time of writing. Despite being a smaller altcoin and occupying only the 15th-largest spot on the crypto industry’s list of the top 20 digital assets, the currency appears to have spiked by as much as 400 percent over just the last year alone.
Last February, the asset was trading at a mere 40 cents per unit. Now, the currency has jumped past the two-dollar mark. Thus, BTC is suffering marginally while its “tinier” altcoin cousins appear to be heading for the stars.