Despite the overly negative economic landscape due to the coronavirus outbreak, assets across the board rallied on Thursday, including equities, commodities, and oil. The price of bitcoin also witnessed a surge above the $7,000 mark after a long time this year. But the price of the leading cryptocurrency retraced quickly to $6,800.
Unemployment claims continue to surge in the United States.
The Coronavirus pandemic has caused the global economy to plunge as over 2 billion people are currently under lockdown. New Jobless claims numbers in the United States show an increase of 6,648,000 unemployed Americans over the past week. Several states in the US are under lockdown as COVID 19 positive cases continue to increase in the country. The US government has announced massive stimulus packages to revive the financial markets, and the government is planning to announce more such packages to revive the economy.
Bitcoin is still coupled with traditional markets.
At the time of writing, the price of bitcoin is trading just above the $6,700 mark. The price of bitcoin is still coupled with the traditional markets as it reacted in a similar way on Thursday. The short term prediction for bitcoin is still quite bearish as markets are expected to plunge in the midst of the global pandemic. Bitcoin’s price is expected to fall below the $5,000 mark in the coming weeks as coronavirus pandemic continues to put the world on halt.
The crypto market is now up around 2.9% on the day to $191.3 billion, outpacing the S&P 500 and Dow’s 2.2% gain on Thursday. The global financial markets are poised to crash as the global pandemic forces businesses to remain close for the foreseeable future. Bitcoin witnessed one its worst month in March as the price tumbled below the $4,000 mark at one point. The leading cryptocurrency also witnessed massive volatility in the past one month as the volatility index reached a six-year high at one point.
