Prasos Cryptocurrency Market Report Q1/2020

Share this article:
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on telegram

We have published the first Cryptocurrency Market Report for 2020. The first quarter of the year was exceptional for the whole economy as the Covid-19 crisis changed the fundaments of the world economy.

You can download the full Cryptocurrency Market Report here

As we look back at historical data, we see that high-intensity sell-offs usually affect all asset classes, with liquidity escaping eventually into cash. Bitcoin experienced a sell-off like most asset classes, dropping up to 50% in early March. However bitcoin has recovered since, rising around 100% from March lows.

The futures market and heavy deleveraging also contributed to bitcoin’s price crash. The sudden fall was led by Seychelles-based bitcoin and cryptocurrency exchange BitMEX, which offers risky leverage trading with huge leverages. Huge wave of margin calls dropped bitcoin price temporarily to a low of $3600 on the exchange before it was abruptly closed for maintenance.

Analysis of the effects of Covid-19 crisis on bitcoin, gold and the stock market

During the crisis bitcoin seems to maintain its position as an uncorrelated asset. The 90-day correlation between bitcoin and S&P 500 Index peaked at around 0.5 and is showing early signs of reversing to its historical norm. In the contemporary sentiment, an investor should focus on long-term view. The correlation between gold and S&P500 Index has varied significantly in short time windows and we should not overweigh short- term data.

In the report we look at Swedish head fund manager Karl-Mikael Syding’s analysis about how different asset classes recover from the seen liquidation. His model is very bullish for bitcoin, gold and silver. He expects gold to keep performing well throughout the year and bitcoin to perform extremely well in the third and fourth quarter of the year.

Macroeconomical forecast for 2020-2021. Data source: Karl-Mikael Syding.

Download the Prasos Cryptocurrency Market Report Q1/2020

Related articles
Start the discussion
Inline Feedbacks
View all comments
coinmotion logo

Not a Coinmotion user yet?
Sign-up for a free account right now!

Follow Coinmotion on Twitter for the latest news!


Tilaa uutiskirjeemme
Haluatko kuulla ensimmäisten joukossa tuoteuutuuksistamme, saada super hyper erikoistarjouksia sekä oppia kryptovaluuttasektorista lisää eksklusiivisten markkinaraporttiemme kautta? Haluaisimme lähettää sinulle sähköpostia silloin ja tällöin – ei kuitenkaan liian usein – eli jos haluat päästä etuihin kiinni, täytä tietosi alapuolelle. Pysytään yhteyksissä! Oletko jo Coinmotionin käyttäjä? Voit muuttaa tilaustasi myös tilin asetuksissa.
Tilaa uutiskirjeemme täyttämällä tietosi
Lisätietoja tietojen käsittelystä löydät tietosuojalausekkeestamme
Suscríbete al boletín de noticias de Coinmotion
¿Quieres ser el primero en enterarte de nuestras novedades, recibir ofertas mega buenas y aprender más sobre el sector de las criptomonedas a través de informes exclusivos de mercado? Nos gustaría enviarte un email de vez en cuando – no demasiado a menudo – así que por favor rellena tus datos abajo. ¡Estamos en contacto! ¿Ya eres usuario de Coinmotion? Puedes gestionar tu suscripción a través de la configuración de la cuenta.
Suscríbete ahora rellenando tus datos aquí
Responsable del fichero: Coinmotion Oy. Finalidad: envío de información sobre productos y servicios propios al suscrito. Legitimación: consentimiento. Destinatarios: No se comunicarán los datos a terceros. Derechos: acceder, rectificar y suprimir los datos, así como otros derechos, como se explica en la información adicional. Puede consultar información adicional y detallada en nuestra Política de Privacidad.
Subscribe to Coinmotion Newsletter
Would you like to be the first one to hear about our product updates, receive super hyper special offers and learn more about cryptocurrencies through our exclusive market reports? We are happy to send you an email every now and then – not too often – so please fill your information below. Let’s stay in touch! Are you already a Coinmotion user? You can also manage your subscription via account settings.
Subscribe now by filling your details here
Responsible for the file: Coinmotion Oy. Purpose: sending information about own products and services to the undersigned. Legitimation: consent. Recipients: The data will not be communicated to third parties. Rights: access, rectify and delete data, as well as other rights, as explained in the additional information. You can consult additional and detailed information in our Privacy Policy