Q1 2020 Review: macroeconomic environment takes center stage for cryptocurrencies

A quarterly recap of the "Currencies" under our taxonomy.

Q1 2020 was one of the most eventful quarters in the history of cryptocurrency. Everything we thought would happen in 2020 collided with the highly improbable and extremely impactful exogenous shock of the coronavirus. The outlook for the year has changed dramatically, and the largest driver of cryptocurrency prices for the foreseeable future will be the macroeconomic environment.

Bitcoin

With clear skies ahead, halving abound, and momentum from an 84% rise in 2019, Bitcoin started the year on a tear. In the first 45 days of 2020 Bitcoin rose more than 45%, reaching a high of $10,362. However, Bitcoin’s fate soon changed as fears of the coronavirus began impacting financial markets globally.

Amidst the broader market sell-off, Bitcoin found itself not immune. The long hailed, albeit weak idea that Bitcoin would remain uncorrelated in a time of crisis was shattered, as Bitcoin’s correlation with the S&P 500 reached all-time highs.