October 2nd, the President of United States Donald Trump tweeted that he and his wife, the First Lady Melania Trump have tested positive for COVID-19 and that they were beginning their quarantine process. It sends ripples of price drops across markets, including that of digital assets. Bitcoin was down by 1.9% falling from USD 10,678 to USD 10,400, with similar drops suffered by other altcoins as well. However, compared to the traditional markets, crypto suffered an initial setback, recovering soon, displaying bullish trends over the weekend and at present.
The financial markets felt the heat as well, with the Dow Futures plunging lower than 355, S&P 500 futures fell about 2%, and Australia ASX All Ordinaries dropping by 1.35%. Extended losses were felt in the crude oil end as well, with gold being the exception, as it was rallying high. With the impending US elections and the overall COVID situation, things have been tense. Now, with POTUS and FLOTUS getting diagnosed with corona and the White House on quarantine alert, how is the market responding?
Trump’s COVID Effect on Cryptocurrency
What an eventful week was it? The cryptocurrency market was in a slump following the violations charges made on BitMEX by the United States Department of Justice and Commodity Futures Trading Commission. The Bitcoin process took a 3.7% dive with a significant selling off pattern noticed in the market. The COVID diagnosis of President Trump and his wife was the second blow that pulled the markets further down, by a total of 4% (press time on the given day). Some of the other altcoins that took the plunge are:
- Ether (ETH) – 4.8%
- Chainlink (LINK) – 7.5%
- Ripple (XRP) – 3.7%
Bitcoin’s 180-day price volatility reached its lowest since 2018, November, reaching a 23 month low of 0.028 at the weekend.
That being said, the recovery from the dual blows and the price fall was fast and Bitcoin along with other Altcoins were seeing rallying by Monday. By that, the fair report on the President’s health had been made public which caused relief to the fluctuating markets. The initial price drop, according to experts, could have been worse with a long-term impact; nevertheless, the prices have remained optimistically stable in the days that followed. It felt like a repetition of the lockdown crash, where while the crypto did react to the plunging financial markets, its recovery was fast and steady compared to the stocks, equities, and bonds. A bullish uptrend is expected soon on crypto prices