At the time of writing, bitcoin – the world’s number one cryptocurrency by market cap – is continuing its bullish behavior and getting even closer to the $10,000 mark it enjoyed last February. At press time, the asset is trading for a whopping $8,850, though it briefly sailed past the $9,000 mark early yesterday morning.
Bitcoin Is Getting Bigger and Bigger
The currency is setting new boundaries for itself after the U.S. has agreed to several new aid packages for both workers and businesses alike. The coronavirus pandemic in the U.S. appears to be causing more damage to the economy. With more than 30 million unemployment claims in the country and several governors extending stay-at-home orders until May 15, the situation has ultimately led to a two-month period of no work for many Americans.
But the good news is that several people have already collected their stimulus money. Approved into law last March, a $2 trillion aid package that saw $1,200 stimulus checks handed to a large majority of Americans has gotten things rolling for several people who are down and out. The money they’ve received appears to have stirred the economy into better conditions as both stocks and crypto alike have surged over the past two days.
Some are not entirely sure that things have turned around for bitcoin, however. Meltem Demirors – chief strategy officer at London’s Coin Shares, a digital asset manager – says:
We are seeing some enthusiasm around bitcoin as it breaks $8,000, but we are still watching closely and believe the sentiment is not yet bullish. I expect bitcoin will see more trading activity around the halving – most likely ‘buy the rumor, sell the news’ and we’re seeing a lot of interest right now – our portfolio companies are reporting high volumes of inbound from firms looking to access bitcoin markets, but the volume is largely in derivatives.
Marcus Swanepoel – a chief executive at London’s Luno cryptocurrency exchange – feels differently. He sees crypto as entering new territory thanks to people’s changing perspectives of what digital assets are and what they can do. He’s confident the market has turned bullish and comments:
The interest in cryptocurrencies is now building as investors look to the month end and forward to May and June. Many will have written off March as an extraordinary event and will base their forward thinking on trading through April. The reality is that cryptocurrencies have retained, or increased, value better than many other asset classes.
Have the Bulls Taken Over?
Rich Rosenblum – co-head of trading at digital assets trader GSR – also believes bullish sentiment has entered the market, mentioning:
The majority of investments in the market are bullish, with many having a long-term investment horizon unfazed by recent volatility. This overall sentiment could act as support for the bitcoin price over the next few weeks, though we aren’t entirely out of the woods yet.