The Week in Bitcoin – March 18

This Week in Bitcoin 02.04.2020

The Week in Bitcoin

In the last 7 days, global financial markets (crypto included) have been at the center of some dramatic and very bizarre events. As much as we’d like to avoid the Coronavirus topic, it impacted the financial world in a very significant way this week. Here’s a recap to put things in perspective.

Since last week we have seen:

  • Global travel restrictions and national emergencies declared.
  • The stock market fall to 2017 levels.
  • Bitcoin crash to mid-2019 levels.
  • New records set in market volatility.
  • The Federal Reserve commit to $1.5 Trillion in new stimulus, remove reserve requirements for banks, lower interest rates to zero, and ponder the idea of universal basic income. Read More
In extreme market conditions no asset is immune to risk, even those we traditionally look to for safety, such as precious metals and bitcoin. But when markets see true panic, there is no safe-haven, and this is a lesson that needs broader understanding. Markets crash together, as a whole, when businesses and individuals sell whatever they can to cover for short-term living costs in times of heightened uncertainty. And this is exactly what we saw happen, but it does not mean that gold or bitcoin are no longer safe-haven assets.

The virus exposed many structural weaknesses in global financial markets, that much is true. Central banks around the world have either already created or are committed to creating trillions in new money to curb panic and market downside. It’s yet to be seen if their efforts will prove to be effective long term.

But let’s remember that this is exactly why Bitcoin was created. Bitcoin was born in the midst of the 2008 financial crisis, when bailouts were given to insolvent banks and hedge funds, when new money was created and given to the most irresponsible of market participants. There are many eerie similarities today.

Despite this chaos the past 7 days, Bitcoin carried on. It continued creating new blocks as scheduled every ten minutes. Its monetary policy remained unwavering. Its believers more convicted than ever.

Bitcoin Falls From $8,000 
Use caution and stay safe if you visit a grocery store near you with a kiosk.
For purchases of $5,000 or more, Coinme’s Personal Bitcoin Advisors can help you buy digital currencies from the comfort of your own home.

Thanks for reading,

-Your Coinme Team
coinme.com/clients

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