Bitcoin suddenly started going against the larger markets, surging 20% ââin the last 24 hours of trading and climbing to over $ 6,000 per bitcoin.
[Updated at 1.14pm EDT]: Bitcoin peaked at $ 6,350 on the Luxembourg-based Bitstamp exchange before falling back somewhat to around $ 6,200.
The price of bitcoin, which fell below $ 4,000 last week amid “extreme” market volatility, has stalled for most of this week, trading around $ 5,000.
The precise reason for bitcoin’s rise today was not immediately clear, although some bitcoin and crypto watchers suggested that bitcoin is currently “oversold” after its strong sell-off over the past week.
âBitcoin has gone through a consolidation process at around $ 5,000 in the past six days,â said Alex Kuptsikevich, senior financial analyst at FxPro.
“Technical indicators, including the Crypto Fear & Greed Index and the RSI, show that bitcoin is still in deep oversold territory.”
Meanwhile, US equity futures were down before the market opened in New York, with investors worried the latest efforts by the Federal Reserve and central banks around the world had not gone far enough to cushion the market. the economic impact of the coronavirus epidemic.
The number of confirmed coronavirus cases in the United States increased overnight, from 40% to more than 9,400.
European stocks opened higher earlier in the day but abandoned their gains following the decline in Asian markets.
Yesterday the Fed said it would create a safety net for blue chip money market funds and the European Union’s central bank announced a pandemic emergency purchase program that will buy for 800 billions of dollars in securities.
Some in the bitcoin and cryptocurrency community have suggested that bitcoin could outperform the wider market due to the economic turmoil caused by the spread of the coronavirus.
âBitcoin was created for this moment,â said George McDonaugh, co-founder and CEO of blockchain investment firm KR1.
âWe’ve seen institutions leave the market for now, holders can buy cheap bitcoin in the meantime. Soon the money will have to find a home, and depending on how bad things are, bitcoin will have a different sheen. “
Cities in the United States and Europe are increasingly closing, with the New York Stock Exchange announcing the temporary closure of its trading floor and the partial closure of the London Underground.
Elsewhere, bitcoin rivals including ethereum, Ripple’s XRP, litecoin and bitcoin cash also rebounded, adding between 8% and 12%.