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U.S. Overnight Preview: Bitcoin Crashes, Stocks Plummet

Posted Wednesday, March 7, 2018 by
Shain Vernier • 2 min read

The markets are rocking right now, with several big stories coming across the wires. U.S. equities continue to react to Gary Cohn’s departure from the Trump administration, with the DJIA down over 250 points and the S&P 500 falling over 15. Not to be outdone, Bitcoin (BTC) has plummeted beneath $10,000 on news that the U.S. Securities and Exchange Commission (SEC) will require cryptocurrency platforms to be registered.

night
As The Overnight Session Approaches Traders Are Turning Out The Lights On U.S. Equities.

Here are several critical events slated for the next 24 hours:

Country                          Event

Japan                            Foreign Bond Investment (March)

U.K.                               RICS Housing Index (Feb.)

Australia                       Trade Balance (Jan.)

China                            Trade Balance (Feb.)

E.U.                               ECB Deposit Rate Decision, Press Conference

Canada                         BoC Governor Poloz Speech

The headliners of this group are the ECB Announcements and commentary from BoC Governor Poloz. Be sure to have your stops down and leverage in check as these central bankers take the stage if you are in the Euro or Loonie.

Bitcoin Crash

News of pending cryptocurrency regulation is breaking from the U.S. Securities and Exchange Commission (SEC). Earlier, the SEC stated that any enterprise functioning as a cryptocurrency exchange must register with the SEC as a formal exchange.

Even though this news comes as no surprise to anyone involved in the crypto markets, it is still wreaking havoc. The impact has been brutal for the cryptos over the last 24 hours:

Coin                              Change

Bitcoin (BTC)                 -9%

Bitcoin Cash (BCH)      -10%

Ethereum (ETH)           -9%

Litecoin (LTC)               -9%

The key area of $10,000 for BTC is being tested mightily. If sellers win out, the result facing the entire cryptocurrency space could be disastrous.

Overview

Fundamentals have driven trade for the entirety of the U.S. session. From changes in the Trump administration to Bitcoin, volatility has been the rule as investors run for the hills.

I expect more of the same for the near future. We are in the midst of a charged news cycle — anything can happen. As active traders, all we can do is stay on the lookout for opportunity and watch our exposure.

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