In the last 24 hours, Bitcoin (BTC) and cryptocurrencies recovered part of the value they lost in the last few weeks due to the Coronavirus outbreak. It is worth remembering that digital assets fell to almost their lowest levels in months and, in some cases, in years. Now, they seem to be decoupling from financial markets and experiencing their own recovery. The main question remains how long this positive trend could continue.
Cryptocurrencies Recover Part Of The Value Lost
Digital assets have expanded in the last 24 hours. Indeed, Bitcoin grew by over 17.04% followed by Ethereum (ETH) with a growth of 17.29%, XRP 11.40%, Bitcoin Cash (BCH) 24.54% and Bitcoin SV (BSV) 34.87%. This shows that the entire market started to recover part of the price they lost in the last weeks.
The Coronavirus outbreak pushed many governments to lock their countries down, something that completely affected the economy and financial markets. Indeed, stock markets around the world massively fell in a bid for traders and investors to search for safe haven assets and to de-risk their positions.
Of course, Bitcoin and digital assets worked as risk-on assets and experienced a massive sell-off. Indeed, in just a few months, Bitcoin fell from $10,500 to below $4,000 a few days ago. During a few weeks, digital assets followed traditional markets and behaved like they were doing. Now that they are recovering while stock markets remain in the red the main questions remain whether this recovery will be sustained or if this was just a fake breakout.
We wrote at UseTheBitcoin a few days ago that experts consider that Bitcoin could surge to $50,000 in the next months. This is according to Su Zhu, the CEO of Three Arrows Capital. He added that this is related to the fact that several emerging markets are now experiencing the negative effects of the current Coronavirus expansion.
While the USD becomes stronger and EM currencies lose their value, Bitcoin grows and positions itself as a store of value that could be used in the future by people and investors. While EM countries are planning to print money, Bitcoin can only be mined and there will only be 21.000.000,00.
At the time of writing this article, Bitcoin is being traded around $6.239 and it has a market cap of $114.05 billion.