Although the crypto market looks bloody, the drop came as global markets entered a period of crisis due to the rapid outbreak of the coronavirus-caused illness COVID-19. On Monday, the S&P 500 and the Dow Jones saw what has already been dubbed “Black Monday,” plunging 7% in response to a growing oil crisis due to complications in negotiations. After more volatility, there was “Black Thursday,” during which markets dropped 10% in a single day — the biggest crash since the crisis in the 1980s.
Due to this, central banks have been forced to react; the ECB has bolstered its QE program, the Bank of Canada cut its interest rate again, the Federal Reserve injected $1.5 trillion into the repo market, and much more.
Considering this backdrop, it’s unsurprising Bitcoin and the broader crypto industry saw a mostly tough week.
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Bitcoin & Crypto Tidbits
U.S. Politician Unveils “Crypto-Currency” Act: Monday saw Representative Paul Gosar, of Arizona’s fourth district, unveil the “Crypto-Currency Act of 2020.” The premise of the bill should be music to the ears of innovators in the space:
By providing much-needed regulatory clarity about cryptocurrency, we will make it easier for businesses, institutions, and everyday Americans to participate in this growing industry. No more murkiness, uncertainty, or confusion.
Gosar explained that this bill is absolutely necessary for America’s primacy in innovation, before adding that there’s no way America should be sitting on the sidelines when it comes to cryptocurrency, for digital assets offer “a way for forgotten and oppressed people to participate in the global economy.” The Act will divide cryptocurrencies into three categories, separating crypto-currencies from digital assets deemed commodities and securities: crypto-currencies would be regulated by the Treasury, crypto-commodities would be regulated by the CFTC, and crypto-securities would be regulated by the SEC.
Attendees of Ethereum Event Test Positive for Coronavirus Illness COVID-19: Although nearly all upcoming Bitcoin and crypto conferences have been canceled or at least postponed, some took place last week, and that hasn’t turned out well for attendees. According to a tweet from Afri Schoedon, an ex-Ethereum developer and programmer, he has just “tested positive for” COVID-19. While it isn’t clear where exactly he caught the virus, Schoedon explains that “given [his] symptoms and timing,” he was probably infected at the Ethereum Community Conference 3 in France, held from March 3rd to 5th. Since his diagnosis, there have been purportedly six or seven other attendees of the event confirmed to have the illness, while others have intent to test for the virus.
Veteran Trader Warns of $1,000 Bitcoin: Peter Brandt, a legendary commodities trader, recently warned that the recent price action may have been affecting his long-term outlook on Bitcoin. Responding to someone who asked him if Bitcoin is bottoming in the $5,000s, Brandt remarked that if he looks at the chart of the cryptocurrency “without bias,” he sees a “sub-$1,000” price, which would require BTC to drop at least 80% from the current price of $5,500.
If I interpret the chart without bias, I would say sub $1,000
— Peter Brandt (@PeterLBrandt) March 12, 2020
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