Bitcoin Price Breaks $6K, Biggest Daily Gain Since October
Bitcoin price has returned to growth after hovering slightly above $5,000 for more than a week. The largest crypto by market cap has gained over 20% during the last 24 hours, thus showing the largest single-day gain since October last year.
Bitcoin Gains Over 20% to Trade Above $6,200
Bullish traders are cautiously buying crypto as the sentiment is improving in traditional markets as well. Bitcoin has been watching very closely how the other markets were doing, copying their moves during the coronavirus crisis. However, yesterday we saw the first signs that the digital currency had gained some independence and stood firm while stocks and oil prices tested new lows. Today, Bitcoin has extended its mini-rally and surged over 20% as per Coinmarketcap data, currently trading at $6,247.
Today’s rebound in stocks and oil prices might have also contributed to the improving sentiment, as the US stock indexes bounced back once President Donald Trump discussed potentially effective drugs to be used against the COVID-19 disease. Elsewhere, WTI and Brent futures surged 21.40% and 12.90% respectively, as investors realized that crude had been wildly oversold.
The crypto community has been worried that yesterday’s market carnage would eventually put pressure on Bitcoin as it has already happened several times this month. However, the cryptocurrency took the situation in hand and has consolidated above $6,000, at least for now.
Earlier today, Bitcoinist discussed several bullish signals that proved the cryptocurrency was acting independently.
Will Institutional Buyers Come Back?
One of the reasons why Bitcoin crashed so hard is that institutional investors left the market en masse in a hurry to seek cash amid the coronavirus panic.
When the markets calm down, it’s likely they will try to get back their exposure to the cryptocurrency. However, it’s too early to give some predictions at the moment. The markets are in a very difficult situation, with most analysts expecting a global recession.
In fact, Bitcoin is not necessarily driven by whales at the moment. The king of crypto is currently bullish because most fiat currencies are crashing, with many investors moving to the US dollar as a safe-haven. GBP/USD fell to the lowest level since 1980. Also, the Aussie Dollar and Japanese Yen tumbled against the US dollar to multi-year lows. The global recession is looming, and people are looking for the best form of cash to preserve their savings. Besides the US dollar, which is the main beneficiary at the moment, Bitcoin is also winning from the forex reshuffle.
When do you expect Bitcoin to return to $10,000? Share your expectations in the comments section!
Image via Shutterstock, Coinmarketcap