As global stock markets continue to twist, bitcoin’s return to the $ 9,000 level may have been caused by some of the same forces that sparked a bond rally – a desire for respite from a coronavirus-ridden market.
After sharp price hikes on Thursday, bitcoin (BTC) is trading regularly in the range of $ 9,000 to $ 9,200. Over the past 24 hours, the change in the price of bitcoin has been minimal, down half a percent at 6:00 p.m. UTC (1:00 p.m. ET).
Traders see bitcoin falling back into the $ 9,000 range while another sign that bitcoin is tending to increase in 2020 as traditional markets stumble. Since the start of the year, bitcoin has risen more than 26% while the S&P 500 stock index is down 9%. Sentiment of cryptocurrencies appears to be bullish as prices remain above significant moving averages.
While traders seem open to viewing the cryptocurrency markets as a refuge from market turmoil, more volatility is possible before the May cut in half, an event that will cut the reward for bitcoin miners in half.
“It’s a rescue rally. In my opinion, we have a probability of sweeping another trough before the rally after halving, “said Mostafa Al-Mashita of the Canadian cryptocurrency brokerage firm Secure Digital Markets.
“I believe gold and BTC are safe havens,” said Henrik Kugelberg, an OTC crypto trader based in Sweden. “As the coronavirus has just started to spread, I think a strong market will last well until the halving is effective. To me, it seems plausible that we can reach a record level this year, perhaps within six months. ”
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