Bitcoin Plays With USD 9,000, While Virus Fears Weigh on Stocks
[NEWS BLOG]: Bitcoin Plays With USD 9,000, While Virus Fears Weigh on Stocks
Bitcoin (BTC) is once again trading around USD 9,000, while the risk-off sentiment has hit stock markets across the globe hard in recent days.
At pixel time (10:35 UTC), BTC trades at c. USD 9,010 and is up by 4% in the past 24 hours and the past week. Earlier today, the price reached USD 9,100 before dropping to almost USD 8,900 and moving back to USD 9,000.
Also, while the U.S. S&P 500 stock index has sold off about 2.2% over the past three days, the number one cryptocurrency is up by about 8% over the same time period.
Although the exact reason for the most recent surge in bitcoin is still unclear, some commentators point to the Wuhan coronavirus in China as a possible explanation. According to this narrative, the sell-offs in the stock market should be good for bitcoin, assuming – of course – that the digital asset is, in fact, a safe-haven.
However, economist and crypto trader Alex Krüger is skeptical of this virus-related narrative and concluded that “it would seem BTC just did its own thing.”
“Bitcoin's price did not even flinch when the first coronavirus sell-off started. It is clear BTC did not react to the first panic wave. What did bitcoin do when China stocks sold off again on the 22nd (the 2nd panic wave)? This time BTC moved lower. When stocks crashed on Friday while BTC had a positive day, narrative flipped from "bitcoin positively correlated with stocks" to "bitcoin negatively correlated with stocks." Although the Friday afternoon reversal must have been troubling for narrative seekers,” he explained.
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