Bitcoin isn’t out of the woods yet despite Friday’s stock market rally
The turbulence seen within the stock market over the past several weeks has sent shockwaves across virtually all markets, leading Bitcoin and other digital assets to post unprecedented losses throughout the past several days and weeks.
This intense global downturn has been fueled by the Coronavirus pandemic, which has struck fear into the hearts of investors, creating a hysteria-driven selloff of all “risk-on” assets.
Today, however, the U.S. stock market was able to post a massive 10% rebound following President Trump’s decision to declare a state of emergency, a declaration that frees up a significant amount of funding to help states and municipalities curb the rapid spread of the deadly virus.
This rebound has also helped Bitcoin recover some of its recent losses, although analysts are still cautious about getting too excited about any type of mid-term trend reversal.
Stock market sees the largest single-day climb since the 2008 financial crisis
Following today’s White House press conference in which the decision to declare a state of emergency was announced, all the major benchmark indices rallied – with the Dow, S&P 500, and Nasdaq all climbing over 9%.
This movement is unprecedented and seems to suggest that investors believe that the new funding that was freed up by the state of emergency declaration will be enough to contain and curb the rapid spread of the Coronavirus.
Bitcoin – which is currently recovering from one of its largest single-day losses ever – also has been able to post some decent gains today, currently trading up slightly at its current price of $5,600.
This marks a massive climb from daily lows within the mid-$3,000 region that was set during yesterday’s crypto market meltdown.
Will the ongoing equities rebound propel BTC higher?
Although a recovery in the traditional financial markets would certainly prove to be beneficial for Bitcoin, it is important to keep in mind that analysts are still cautioning against getting too excited about the ongoing recovery.
Josh Rager, a prominent cryptocurrency analyst on Twitter, spoke about this in a recent tweet, explaining that he believes it is far too early to grow bullish on the crypto markets, as the Coronavirus-induced chaos may still be in its early stages.
“The President basically made a speech to pump stocks 7% the last hour Not bullish on crypto markets yet, a long ways to go to be certain COVID19 is contained around the world Prediction is continued ranging BTC for the time being ( short term neutral).”
Whether or not the markets are able to sustain today’s momentum when they reopen on Monday will be quite telling into the long-term significance of this ongoing upswing.
At the time of press, Bitcoin is ranked #1 by market cap and the BTC price is up 13.69% over the past 24 hours. BTC has a market capitalization of $102.46 billion with a 24-hour trading volume of $64.79 billion. Learn more ›
Bitcoin14 Mar at 3:35 am UTC
At the time of press, the global cryptocurrency market is valued at at $160.97 billion with a 24-hour volume of $222.37 billion. Bitcoin dominance is currently at 63.50%. Learn more ›