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.
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.”
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.