Bitcoin price was at about $6,500 yesterday, having the steam for a rise from $5,800. The equity markets are under pressure, while cryptocurrency shows strength.
Since yesterday, Bitcoin gained more than 13%. At the time of writing, BTC is trading at $6,672.47. Ethereum got a pump of over 12%, and XRP receives a 7% boost. The cryptocurrency market capitalization rose by 20 billion, which is a very good sign. Previously, the capitalization was draining out hard, with market whales trying to save the market. Many of the Telegram bots are popping up now every time Bitcoin starts losing price.
We may presume that the whales are using USDT to enter the cryptocurrency market. They could use it as collateral for a loan, or maybe borrow them from a company in exchange for BTC. One way or another, while market whales are entering the market, Telegram bots report of 10 to 60 million worth of dollars transactions in different blockchains. Typically, that’s Bitcoin transactions or Tether, or some other stablecoin. Bitcoin has a lot of fans ready to provide liquidity in hard times.
Maybe, Bitcoin ecosystem works similarly to the classic stock market, even right now. While coronavirus attacks, whales from the Bitcoin world use their dollar stash to buy crypto from retail holders like you. Same thing as where the Fed is buying the stocks from corporations and small businesses, to provide them liquidity with fresh cash. The more you wish to sell Bitcoin, the more they buy. This works like the honey extraction process with bees. The more honey you take, the more honey the bees make.
Cryptocurrency Fell on March 13 but Now Average Trend Inspires
Bitcoin’s market capitalization is now at $179 809 165 133, which means it has gained since yesterday. Since the beginning of March 8, the market was selling the stocks, and cryptocurrency experienced harsh beatings. On March 12-13, Bitcoin was losing 40% of its value, together with almost 40% of the network’s hash rate. For over 24 hours, the market cap saw a $93,5 billion decrease. Many of the weak hands made a domino effect, dragging the prices to Oblivion.
However, at the end of March, the cryptocurrency market stabilizes. Vijay Ayyar from Luno crypto exchange said:
“We’re seeing some bullish bitcoin price action today along with other asset classes after the Fed announced unprecedented measures yesterday to shore up the economy. This has given a lot of confidence to investors. It will be interesting to see how bitcoin fares in such an environment, given this is its first test as a haven asset in a market downturn and is yet to be proven.”
As we see, the experts united by the opinion that Jerome H. Powell made a correct announcement regarding the stock buyout. Now, as the stock market regains power, the cryptocurrency market will get even more, thanks to the high volatility and possibly hidden bears.
Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.