The international financial markets have suffered the biggest price decline since the financial crisis in 2008, and the crypto markets have also suffered heavy losses. After a day of recovery, the next crash follows – Bitcoin falls to almost 6,000 US dollars. Especially the Altcoins suffer from heavy price losses. We take a look at the market in the middle of the corona crash.

Since 9 March 2020, the bears have taken over the events on the international financial markets. So we are currently in a downward trend.

Tether – the safe haven for investors during the pandemic? Now even grief is showing its nerves, the reason for this: the corona crash. Most are liquidating their positions to build up cash reserves. The crypto-market is not subject to any regulation, so there are no market mechanisms here as there are in stock trading. Buyers are not stopped when selling and can therefore liquidate their positions quickly.

Are these short-term reactions an indication that we are in economic trouble? Basically, the issues of economic crisis and panic should not be dismissed here. Especially currently, anti-cyclical investments can be worthwhile in order to profit in the long term. The strong trading volume in Stablecoin Tether(USDT) is particularly striking. This crypto currency is oriented towards the US dollar exchange rate. The price of USDT remains virtually unaffected by market events, compared to other currencies. This could be an indicator for the liquidation of other asset classes.

What should investors do in a corona crash?
We believe that investors should remain calm for now. A sale at the prices that have already fallen sharply does not seem to make much sense. The focus should be on the big picture, after all, equity markets are also falling due to the pandemic. Companies like Facebook, Netflix and Microsoft are also suffering from the current developments. Basically, we have experienced one of the longest bull markets in economic history, so a correction of the market was to be expected. The crisis, as well as the widespread panic, are the catalysts that will contribute to the correction. Anticyclical investors can now benefit. In particular, CFD brokers such as eToro or Plus500 allow trading of simple certificates. Particularly risk-oriented investors can even buy leveraged certificates to profit from higher yields.

The corona crash has already become a reality, but long-term oriented investors should not be unsettled. Bitcoin will halve the Block Reward in May. In addition, more and more market participants are adapting block chain technologies and the corresponding crypto currencies. Accordingly, the long-term trend is still intact.