Bitcoin and crypto market are slowly making recovery after three days of the street running red while constantly making progress in development and adoption. Meanwhile, at global level trade war escalation is looming, markets are experiencing dip while some fiat currencies are gaining & others are plunging hard with Brexit situation worsening and painting a bullish picture for Bitcoin.
Crypto market struggling to recover from bad days
It’s been three days since the crypto market has been constantly on a downward slope. Prices took a dump in double-digits as much as 20 percent. Bitcoin alone fell down 14% in these three days. Cryptocurrencies are down 70 to 90 percent from their all-time highs (ATH).
However, after days of red, the crypto market today saw a relief as the market turned green though by a small percentage only.
Meanwhile, Bitcoin and crypto adoption are only rising. Recently, Bitcoin even revived the Ocean Falls, a ghost town in Canada that has about 100 residents. One resident shared his enthusiasm with Bloomberg,
“There’s been a lot of years where we’ve been waiting for someone to come along. The day we fired up, the miners started going, there was the humming, and I said to Kevin, ‘It’s a good feeling seeing that extra power being used.”
Crypto is a fast-moving market that is quick to fall and as quick to rise and that holds true to the developments as well. It might be having a few bad days but if we take a look around the globe, the situation is more or less the same.
Meanwhile the world at a glance:
The world at large is feeling rather gloomy as crisis keeps on popping right, left and center but that is the way of the world, right!
- Trade war escalation looms
The US and China trade war has been going on for quite some time now, that has even spilled over to other countries as well. This is causing poor global trading relations and has left dealers with no appetite for relatively risky assets.
FTSE 100, representing the 100 highest market cap companies listed by the London Stock Exchange has been constantly falling for a month as shown below:
The US stock futures also fell along with Treasuries as the wage gains shown by the latest jobs data topped the estimates. The contracts on the S&P 500 Index also slipped. Equities rose in China while those in Japan and Australia fell down. Amidst the concerns of the durability fo chip demand, the technology shares have been lagging behind.
Apparently, things are going to get worse as Trump reportedly told WSJ that he was “still bothered by the terms of US trade with Japan.”
- Inflation and fiat currency crisis
When it comes to fiat currencies, rupiah leads the gains while yen rose as well. However, others are doing really worse.
Argentina’s peso has lost over 50% of its value against the dollar since this year started. The inflation in the country is due to exceed 30% by year’s end. A local resident, Imelda Rodriguez has been quoted by a mainstream media channel, “Another crisis. Things get harder every day.”
As for Philippine peso, it fell down to a 12-year low, the day before yesterday as the inflation of the country went to a nine-year high at 6.4%.
Michael Ricafort, an economist at Rizal Commercial Banking Corp., stated:
“Higher inflation fundamentally reduces the purchasing power of the peso, thereby increasing the appeal of the US dollar, assuming all other factors are the same.”
He further added:
“Other than inflation, the US dollar has been higher vs. major global currencies and weaker EM (emerging market) currencies.”
The Australian dollar also weakened against its counterparts as trade war escalation possibility rises. Against the greenback, its hit weakest since February 2016 to 0.7137.
- Brexit survival essentials
Brexit is continuously raising concerns as now pointed out by Britain’s former ambassador to the European Union. Quoted by The Guardian, he warned Brexit crisis will have a higher risk, as saying:
“There is now, in my view, a higher risk than the markets are currently pricing of a disorderly breakdown in Brexit negotiations, and of our sleepwalking into a major crisis.”
As we previously shared and also notified by crypto expert Max Keiser, Brexit situation can prove to be bullish for Bitcoin.
The post Bitcoin vs the World This Week: Major Crisis Escalation Looms Globally, Who’s Gonna Win the War? appeared first on Coingape.