Bitcoin Price Remain Stable amidst Tremors in the Stock Market
The price of bitcoin is particularly stable throughout the week despite the turbulence in the stocks exchange markets. It’s been down for some time that a tremor in the US stocks markets would negatively affect bitcoin prices. However, this week’s case seems different as the Dow has dropped about 3 percent yet bitcoin gained 1 percent.
Meanwhile, bitcoin is remaining calm at $6,500 without many variations, the Equity markets are in a different story. The Dow Jones Industrial Average is down by about 3 percent for the week alone. It ended 500 points higher on Thursday after declining a day earlier. However, on Friday, the Dow dropped more than 500 points after some bad quarterly results from major tech companies. Some of the drops steadily recovered later.
The disgruntlement in the stocks market was caused by fears of the ongoing trade war and rising interest rates. However, the independence of bitcoin from the stocks market price movements is relatively new. In early October, uncertainty around the stock markets spilled into cryptocurrencies.
The Dow dropped about 1,300 points in just two days. This was the biggest sell-off in the Dow Jones since February. Bitcoin in response shaded about 6 percent as the cryptocurrency market lost a total of $18 billion from its value.
Bitcoin Steadily Stabilizing
BTC hit its highest peak in late 2017 with the price going as high as $20,000 when retail investors poured a lot of money on the cryptocurrency. A sharp decline in bitcoin price during the last days of 2017 caused by the cryptocurrency to loss halt of its value worth more than $200 billion. Since the beginning of this year, bitcoin price movement has remained within 14 percent on average.
The volatility in bitcoin price almost rendered the cryptocurrency useless for payment of goods and services. However, Bitcoin has remained a relevant store of value over the years. Currently, bitcoin seems to be entering a new phase of its existence with lower volatility and fewer price swings.
Market data for this month indicate that bitcoin move by more than 5 percent just for one day. In January and February, there was more than eight times bitcoin moved by more than 5 percent. Other similar cryptocurrencies also held up this week. Ethereum went up by 0.2 percent while XRP is up by 0.4 percent.
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