• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC
Breaking News: Crypto Exchange Binance To Launch Prepaid Card In This South American Country
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC
Bitcoinist.com
No Result
View All Result
Breaking News: Crypto Exchange Binance To Launch Prepaid Card In This South American Country
bitcoin, cryptocurrency, BTCUSD, crypto, covid19, stocks
Advertisement

Bitcoin Optimistically Breaks Correlation with US Stocks as COVID-19 Drug Trial Fails

Yashu Gola by Yashu Gola
3 years ago
in Bitcoin
0
Advertisement
  • Bitcoin rose on its own on the day the US stocks gave up its gains this Thursday.
  • The cryptocurrency breached key resistance areas in a price rally towards $8,000.
  • The gains appeared after a potential novel Coronavirus antiviral drug failed in clinical trials.

Bitcoin was tailing the U.S. stock market in its boom and bust since March. But the short-term correlation broke this Thursday as the two distinctive markets started moving in opposite directions.

The bitcoin-to-dollar exchange rate increased towards $8,000 in a surprising price rally, breaking above crucial resistance levels to indicate a short-term bull run. A similar move ensued in the top bitcoin rival markets that surged 1.95 percent, or $1.95 billion, at the London midnight close.

Get 30 FREE SPINS at Punt Casino - NO DEPOSIT REQUIRED! Start Playing Now.
bitcoin, cryptocurrency, BTCUSD, crypto
BTCUSD hits $7,775 in Thursday trade | Source: TradingView.com, Coinbase

In contrast, the Dow Jones Industrial Average gave up its 400-point upside move to close Thursday a mere 0.2 percent higher. Other top US indexes, the S&P 500 and the Nasdaq Composite, too fell by 0.1 and 0.75 percent, respectively.

Coronavirus Drug Fails Trials

The decline in the US equities came after the Financial Times reported that Remdesivir, a drug Gilead Sciences was testing as a potential vaccine against the novel coronavirus COVID-19, flopped during clinical trials. The media mogul sourced a World Health Organization’s leaked report that discussed the drug’s failure.

Many investors were hoping that a coronavirus vaccine would allow the global economy to register a V-shaped recovery. But so far, only the stimulus packages have helped the US stocks recover – an artificial pump that could fizzle anytime as the US stays amidst a healthcare crisis.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

Like stocks, bitcoin rebounded impressively after the Federal Reserve announced that it would pump trillions of dollars into the US economy. The cryptocurrency behaved like a risk-on asset, even after posing as a safe-haven asset against potential market turmoils for years.

Bitcoin’s Thursday price rally against stocks somewhat showed the crypto retaining its insurance asset features. Global macro trader Joel Kruger posted an interesting animation that showed how bitcoin was moving alongside fellow safe-haven Gold as other traditional assets fall. He tweeted:

#Bitcoin shining this week (thus far). Interesting to see the divergence with #stocks, as bitcoin plays more into correlations with store of value, even outpacing #gold. Here's a look at how all these markets stack up against the US Dollar since the weekly open. pic.twitter.com/RNto89SF2q

— Joel Kruger (@JoelKruger) April 24, 2020

Bloomberg Coverage on Bitcoin

Bitcoin’s gains and correlation-break with US stocks also followed a report by Mike McGlone, a researcher associated with Bloomberg. He noted that both Bitcoin and Gold are in a robust bull phase that will benefit from central banks’ ongoing stimulus programs. Excerpts:

“This year will confirm Bitcoin’s transition from a risk-on speculative asset to the crypto market’s version of gold, in our view.”

That partially explains why the crypto broke its correlation with risk-on markets this week. Meanwhile, it is set to undergo its third halving in May 2020. Many analysts say that the supply rate cut would push the bitcoin price further upward. Some even predict it to hit $100,000 by 2021.

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Yashu Gola

Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

Related Posts

Bitcoin

Bitcoin Bearish Signal: Aged Supply Flows Into Binance

5 hours ago
Bitcoin this week

Bitcoin And Crypto This Week: Here’s What Will Be Important

8 hours ago
Bitcoin price

Bitcoin Price Nears $24,000 Mark – Can Bulls Push BTC To $25K This February?

12 hours ago
50% of Bitcoin hashrate Controlled by Two Mining Pools

Data Shows 50% Of Bitcoin Hashrate Controlled By Two Mining Pools

1 day ago
Institutional Bitcoin Buying Is a Positive Sign, Suggests Matrixport

Institutional Bitcoin Buying Is A Positive Sign, Suggests Matrixport

2 days ago
Bitcoin BTC

Inflation May Be In A Lull, What Does That Mean For Bitcoin?

3 days ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Top Casinos

BitStarz
BitStarz
Punt Casino
Punt Casino
mBit
mBit
Metaspins
Metaspins
1xBit
1xBit
Coinplay
Coinplay
K8
K8
Vegas Casino
Vegas Casino

Sportbooks

Coinplay
Coinplay

Press Releases

  • Binance Coin (BNB) Trading Volume Pumps By $7 Million While...

    9 hours ago
  • Polkadot (DOT) sees 5% Growth, why Cardano (ADA) and...

    10 hours ago
  • More than a trillion dollars moved in Litecoin (LTC)...

    10 hours ago
  • Moralis has revealed the integration of Web3 API with Aptos...

    11 hours ago
  • Is Aptos (APT), Solana (SOL), or Snowfall Protocol (SNW)...

    1 day ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC

© 2022 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.