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Analysis of events in the cryptocurrency market for the 3 months of 2020

The year 2020 initially made it clear that it would be an unforgettable experience. In January, a military conflict began between the United States and Iran, and the network even actively discussed the risk of a new world war. Oil was rising against the backdrop of strikes on Iran's oil facilities, which could have caused a shortage of raw materials, and gold was rising in price amid geopolitical risks, as security assets believed.

The value of BTC in the market also increased sharply, rising by 20% in 5 days. The cryptocurrency hit the $ 8,000 mark and received multiple comparisons to gold. On January 22, Quarantine was shut down in Wuhan, China, and economists were just beginning to consider damaging the financial system worldwide. Quotations of stocks and commodities in the PRC collapsed almost instantly. Immediately cheaper oil, copper and palm oil.

Gold, in turn, has refreshed the maximum over the past 6 years, and the Bitcoin exchange rate has hit $ 9,000. Many have begun to liken cryptocurrency to a quiet haven ideal for investors. Many analysts have said that in bitcoins it is possible to keep money in the face of all global shocks. Investors were projecting the desired mark at $ 20,000. For example, Mike Novograts of Galaxy Digital was confident that BTC would rise to 20,000 in 2-3 months. Tom Lee, a Wall Street analyst and co-founder of Fundstrat, expected that under the influence of the coronavirus, the BTC rate would rise by 300%.

They were all wrong and the reality was harsh. After a relatively quiet February, in the middle of which bitcoin set a maximum for 2020 at $ 10,400, things started to change. By the end of February, the price had dropped to $ 8,500, but this decline was not limited. The most interesting began in March, when even gold was affected. After a high of $ 1,700 over the past 7 years, quotations have sat down to $ 1,455, but then rose above $ 1,600.

In early March, there were two events that struck across multiple fronts. The first of these was the disruption of the OPEC deal, which caused the value of Brent oil to fall in record over the past thirty years. The economy of the Russian Federation thus rolled back to 2014.

In addition to everything, the US has closed the border with Europe, which is why the stock market started to fall even deeper. Cryptocurrencies have failed to retain the title of security asset, despite the bold expectations of many analysts. As a result, bitcoins and altcoins have sought to conquer lows. The price of BTC fell to $ 3,800, falling more than 50% in four days. Digital money has begun to be compared with risky assets that respond to all external factors, like stocks.

For the first three months of this year, we have seen everything from threats to humanity from a possible world war and a pandemic to the onset of a global crisis that no one had seen before. Cryptocurrencies, as usual, have proven ambiguous in the market. At first, they seemed like a quiet haven to investors, and then they changed roles to the exact opposite. Only one conclusion can be drawn from the first three months of 2020: digital money is responding to external factors, which indicates market maturity. Accordingly, the development of digital assets continues, and critics of cryptocurrencies lose their arguments.

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