Bitcoin Vulnerable As Uncertainty Rises 

If there is one thing that has made a lot of Bitcoin investors worried recently is that BTC/USD failed to perform well in times of uncertainty. Sure, one could say that 1 Bitcoin will always be 1 Bitcoin but by the same logic I could see 1 rock will always be 1 rock. With the fears of a recession looming over, investors are worried about their positions not only in Bitcoin but everywhere else. Some simply would not just admit that Bitcoin is actually a risky investment and can therefore not do well in times of a crisis. They come up with all sorts of reasons like, “this is Plus token dumping their coins” or “this is investors selling Bitcoin to cover margin calls on stocks”. 

The fact of the matter is that the vast majority of serious investors who are actually in a position to make an impact do not consider Bitcoin to be a safe haven asset. With uncertainty on the rise, the cryptocurrency market as a whole is in a lot of trouble. Yesterday, we saw Joe Biden brutally defeat Bernie Sanders in what can be called Super Tuesday II. This has now pretty much cemented Joe Biden’s status as the Democratic nominee. It will be extremely difficult for Bernie Sanders to do anything now to change this. The gap has widened too much and Sanders really needed to win Michigan to prove that he was still in the fight. Not only did he lose Michigan, he lost the important states of Missouri and Idaho. 

The next contest is already expected to go in Biden’s favor. He is expected to win Florida and the majority of other states that will vote on March 15th. This has the progressives very concerned now and Wall Street is definitely excited about this. If Joe Biden becomes president, Wall Street would have its own administration in the Whitehouse. Even if Biden loses Trump, that is still a win for Wall Street. So, we might see reaction to this in the market in the near future but there are other factors that point to a decline in the S&P 500 (SPX) down to the 61.8% fib level and potentially lower. 

The Coronavirus situation has gotten really worse. South Korea which used to be one of the top three countries with the largest number of cases seems to have now gotten the situation under control but countries like Italy and Iran have surpassed it in the number of cases. We are now seeing a rise in cases in Europe in countries like Germany, France and Spain. Meanwhile, WTI Crude Oil (USOIL) risks further downside after a false break above the ascending triangle. The situation that seems to be developing now is much more uncertain and we might be looking at US Dollar being the ultimate beneficiary. The US Dollar Currency Index (DXY) successfully recovered above the 200-week EMA and now eyes further upside. As uncertainty keeps on rising, more investors would want to cash out of riskier investments like Bitcoin in the weeks and months ahead.