BITCOIN GAINS OVER 20% TO TRADE ABOVE $6,200
Bullish traders are cautiously buying crypto as the sentiment is improving in traditional markets as well. Bitcoin has been watching very closely how the other markets were doing, copying their moves during the coronavirus crisis. However, yesterday we saw the first signs that the digital currency had gained some independence and stood firm while stocks and oil prices tested new lows. Today, Bitcoin has extended its mini-rally and surged over 20% as per Coinmarketcap data, currently trading at $6,247.
Today's recovery in stock prices and oil may also have helped improve sentiment as US stocks rebounded after President Donald Trump discussed possible effective drugs to fight COVID-19. Futures for WTI and Brent rose by 21.40% and 12.90%, respectively, as investors realized that the goods were sold very strongly.
The cryptocurrency community is worried that yesterday's carnage will ultimately put pressure on bitcoins, as happened several times this month. However, cryptocurrency has declined and at least has established itself at more than $ 6,000.
Earlier today, Bitcoinist discussed several bullish signals that proved the cryptocurrency was acting independently.
WILL INSTITUTIONAL BUYERS COME BACK?
One of the reasons why Bitcoin crashed so hard is that institutional investors left the market en masse in a hurry to seek cash amid the coronavirus panic.
When markets calm down, they are likely to try to regain cryptocurrency risk. However, it is too early to make any predictions. Markets are in a very difficult position and most analysts expect a global downturn.
In fact, at present, bitcoins do not necessarily work on whales. The cryptocurrency king is curious now, as most fiat currencies are falling. Many investors switch to the US dollar as a safe haven. GBP / USD fell to its lowest level since 1980. In addition, the Australian dollar and Japanese yen fell to multi-year lows against the US dollar. There is a global recession, and people are looking for the best form of money to keep their savings. In addition to the US dollar, which is currently the main beneficiary, Bitcoin also benefits from currency exchange.