Bitcoin Broke Down Under $8,000 and S&P Reported 5% Loss
Bitcoin (BTC) recently lost the support of $8,000 not too long ago. And this happened following a close hug to $8,000 for three to four hours. BTC dived to as low as $7,900 as of the moment, according to the data from TradingView.
Based on Skew.com’s data, the latest leg lower is the fifth of its kind in the past day. And it has seen $20 million worth of BitMEX longs liquidated. This means that more than $200 million worth of such positions have been liquidated during the past day.
Aside from that, the recent Bitcoin move comes as global markets have fallen off a cliff. The futures of the S&P 500 and Dow Jones already plunged 5%, stopping at this level of loss due to limits. Also, oil declined 30%, dropping as a price war starts between the world’s largest oil producers. And this includes Saudi Arabia and Russia.
As predicted, gold has rallied amidst the weakness in global equities and commodities. For the first time in years, it surmounts $1,700. But Bitcoin has been dipping, hinting that there might be some flaws in the digital gold narrative.
Moreover, several people are expecting the asset to find support soon. Prominent cryptocurrency trader Josh Rager recently noted that BTC has a Point of Control and a level of horizontal support between $7,700 and $7,995. And this suggests that it could reach a bid in this region, adding that a rebound to an $8,550 might happen.
Before the latest leg lower, CryptoHamster remarked that Bitcoin seems to be extremely oversold. It has a number of bullish divergences forming on the one-day chart with the Stochastic, MACD, MFI, EFL, Fisher, and other key indicators.
Central Bank Officials
Meanwhile, on March 7, three monetary and cryptocurrency experts talked about the difficulties and prospects of central bank-issued digital currencies at the Massachusetts Institute of Technology (MIT) Bitcoin Expo 2020.
In addition to that, the panellists acknowledged that distributed ledger technologies (CLT) might improve the existing global monetary system. But they also argued that significant challenges persevere regarding the privacy, interoperability, and scalability of blockchains.
International Monetary Fund’s (IMF) economist Sonja Davidovic told central banks not to rush in imposing blockchain systems. And they must properly vet the technology first.
She explained, “What we’ve seen a lot is that there’s hype out there, and people are quickly jumping to choosing that technology just because it’s popular.”
Moreover, Davidovic confirmed that this happened with blockchain. As a result, they’ve seen central banks that are instantly engaging with it. And this is without taking the proper process of testing the technology in a “proof of concept, selecting vendors by an open building process, and having a request for proposals.”
Even with an array of distributed systems accessible in central banks, Davidovic believes that none have shown robust privacy and interoperability. Also, the IMF claims that central banks are experiencing magnified risks in implementing these technologies. And this is because they usually outsource development to third party firms.
