Bitcoin Decouples from Risk Assets in an Aggressive Upwards Move

Must Read

Bitcoin Eyeing $11800 After Intense Drop

As we saw earlier today, Bitcoin started by declining from $11349 to $11176, roughly 1.76%.

USDT Is A Game Changer For Online Poker

CoinPoker - the flagman of the industry, the biggest and the oldest pure crypto poker...

Can XRP defend its price?

Could XRP defend its price action, and rise back to $0.30? Here is my view on how...
- Advertisement -BTCClicks.com Banner
Earn Free Bitcoin

On March 12th, the price of the bitcoin experienced a violent sell-off that resulted in the digital asset falling to $3,850 level.

And today yet again, Bitcoin is recording another massive move but this time it’s in the north direction. In a sudden move, the BTC price has started rising, going as high as $6,400 for now.

At the time of writing, BTC/USD has been trading at $6,350 with 24 hours gains of 20% while managing the daily trading volume of $2.5 billion.

The US stock market, on the other hand, is giving investors a whiplash, as they swung up, to down, to mixed, that too under an hour of trading. US Treasury yields are slightly lower but the 10-year bond yield remains above 1%. Gold markets are also rising to the upside at $1,483.90 per ounce, trying to stabilize.

A growing pile of disappointing economic data is weighing on investors already spooked by the coronavirus outbreak. On Thursday, the US Department of Labor reported a surge of 70,000 new jobless claims.

In the foreign exchange, the dollar continues to be king, up 4% in the month so far.

Temporary Decoupling?

Today is not the only day that Bitcoin is outperforming other risky or safe haven assets. Yesterday, as well, bitcoin went up to $5,500 while the benchmark indexes on Wall Street were down 5%.

Last weekend as well, we saw the price of Bitcoin jumping to almost $6,000 after the Federal Reserve slashed rate cuts to zero and restarted QE but only for BTC to drop under $4,500.

“HUGELY bullish dynamics for Bitcoin right now, BTC flat during HISTORIC risk-off days in markets,” said Hunter Horsley, CEO of Bitwise.

On-chain analyst Will Woo noted that Bitcoin and gold started decoupling from the risky assets three days ago. Now, we could see Bitcoin in an accumulation zone and gold making a double bottom.

However, economist and trader Alex Kruger is unsure of the move. This could very well be temporary according to him as he said, “BTC has largely decoupled from risk assets in the last two days. Not fully though, e.g. this morning’s pump was a mirror of the US stocks up move at the open. I think this is temporary.”

What’s ahead for Bitcoin?

Today, bitcoin is flying, looking to recover all the losses made on March 12. However, industry experts aren’t really bullish on the move as the digital asset is expected to be range-bound with the halving coming up in May.

“$6,400 hit. Monthly level hit here. Expecting to consolidate and reach a temporary top here,” said trader Crypto Michael.

But of course, not everyone as trader Scott Melker is actually bullish here.

Once bitcoin finds its bottom, it is expected the endless amount of money the central banks are pumping into the market would also make its way into bitcoin. And when that happens, bitcoin could make a new high with investors buying the dip — 72% on Coinbase already buying.

- Advertisement -
- Advertisement -

Latest News

Wyoming Amends Insurance Code to Allow Insurance Companies to Invest in Bitcoin & other Cryptos

In the first provision of its kind, Wyoming is allowing the domestic insurers to invest...
- Advertisement -Earn Free Bitcoin

DeepTradeBot: The innovation of large companies at your service

DeepTradeBot is a collection of automated trading tools developed by Deep Neuro Networks LTD, a London, England-based company dedicated to artificial intelligence and...

Flyp.me Instant Crypto Exchange Now Supports REN Token Trading

Decentralized finance is leading the way of the cryptocurrency industry, with the REN Protocol at the front. REN Protocol is...

BLOCKCHAIN OVERCOMES POSSIBILITY OF FRAUD, LACK OF TRANSPARENCY AND TRUST IN THE GAMBLING INDUSTRY

DATE: 07/08/2020 In a recent study carried out by the UK Gambling Commission reveals that the gambling industry has...

The Kuailian Ecosystem, Bringing Blockchain Technology To The World

10 years have passed since the birth of Bitcoin and the first use of Blockchain, a technology that has not stopped evolving,...