American and European equity markets extended their gains on Thursday while major cryptocurrencies made only slight moves on the day. Bitcoin (BTC) was up 1 percent while ether (ETH) up by less than 1 percent.
Notable 24 hour performances on CoinDesk’s digital asset board today as of 20:00 UTC include monero (XMR), up 8 percent; tron (TRX), up 3 percent and IOTA (IOTA) in the green by 2 percent. Assets in the red include bitcoin SV (BSV), down 1 percent; NEO (NEO) lower by less than 1 percent and Zcash (ZEC) down under 1 percent.
Japan’s Nikkei 225 Index closed its day at 5:00 UTC down 4.5 percent, a reversal for the key Asian equities market after spending the week closing in the green. As for Europe, the FTSE 100 Index was up 2 percent at its session close 17:00 UTC. This comes after the British equity index delivered its second-best percentage gain on record on Tuesday, March 24, climbing 9.1 percent. In the U.S., the S&P 500 Index closed up 6 percent at 20:00 UTC.
“Looks like stimulus is short-term good for all assets, crypto included,” said Kevin Zhou, CEO of algorithmic trading firm Galois Capital.
Indeed, while stimulus appears to be keeping markets up, longer-term economic troubles loom. U.S. industrial output has already taken a significant hit as coronavirus and government-mandated business closures hit crucial economic engines.
“We may very well be in a recession, but I would point to the difference between this and a normal recession,” U.S. Federal Reserve Chairman Jerome Powell said March 26 in an interview with NBC. “There is nothing fundamentally wrong with our economy,” he added.
On Sunday, U.S. Treasury Secretary Steve Mnuchin said his department will work with Congress on creating financing programs, which he estimated could involve as much as $4 trillion. In addition, the government intends to provide another $2 trillion in stimulus to individual Americans, a measure passed unanimously in the Senate and set for vote in the…