Recently, Bitcoin traded at $5,466 after a major plummet which cut down the price to below $4,000. At present, traders are looking to make short-term profits as the crypto price ticks up and down. On the other hand, the US stock market also faces a similar recovery. Recently CNBC pre-market data shows that the Dow Jones Industrial Average could begin with over 400 points higher.
Bitcoin Recovering from Coronavirus Price Shocks
Recently Bitcoin increased to over $5,400 coming up from its weekly low inflicted by the effects of the CoronaVirus. The cryptocurrency went up by 23.34 percent following its recent plummeting to below $5,000. Cryptocurrency traders are looking up to making short-term profits from the price movements in the Bitcoin Charts.
Meanwhile, the Wall Street Journal also reported that the US stock futures still maintains very high volatility which is now at two years high as per Cboe Volatility Index. Price movements in the Bitcoin market are positively parallel to that in the stock markets indicating that Bitcoin could be headed the same direction as the Stocks markets.
Despite the recent Bearish trends in the Bitcoin market, most of the cryptocurrencies’ whale addresses remain intact. This is a clear indication that while some traders rushed to make quick profits from the price trends whale account holders were not moved. Few analyst predicts that bitcoin is attacked to face bullish trends once the CoronaVirus pandemic subsides.
Coronavirus holds as the leading Price Indicator
The coronavirus outbreak strain is still remaining as the leading price indicator both within the US stocks market and the Bitcoin market. Recently Bitcoin slopped more than 40% of its value due to the raging coronavirus effects. However, prices shortly recovered on short term rallies seeing the cryptocurrency bouncing back to over $5,400.
According to the New York Times, Coronavirus has infected more 200,000 people all over the globe killing over 7,000 people. The crisis caused panic in the global governments leading to the closure of many major cities and ports of entries into economic zones. The international supply chains have been disrupted by the spread of the virus.
Economists warned that the Coronavirus pandemic is pushing the global markets into a recession as such, investors are liquidating stocks, assets, commodities, and Bitcoin under their portfolio. With most of the value of the assets converting to cash, the USD recently surged in value. Not even Gold, the grand guard of the stock markets as its value lowers by more than 4%.