Bitcoin witnessed one of the worst days in its history since 2013, when the price dropped to as low as $3,600 last week. The slump in the price of the leading cryptocurrency coincided with the crash in the financial markets all over the world. However, bitcoin might be decoupling from traditional markets.
Bitcoin rallies above $6,800 amid the global pandemic
In the last 24-hours, the price of the bitcoin has risen over 21.5% and is trading above $6,800 at the time of writing. The decoupling of bitcoin from traditional markets is good news for the crypto industry, but bitcoin is still not in clear yet. Crypto analysts still believe that bitcoin might drop further before gaining further positive momentum.
S&P 500 fell for most of the day, while #bitcoin climbed. First day in a while without tight co-movement. Is this the start of a decoupling and a return to uncorrelatedness for #bitcoin? pic.twitter.com/ExRPuFwwVC
— Arcane Research (@ArcaneResearch) March 18, 2020
Can bitcoin act as “safe haven” for investors in the time of global pandemic?
Over the last few weeks, bitcoin has not acted as a safe haven for investors as the financial markets continued to crash. However, as governments continue to announce stimulus packages to revive the economy, bitcoin is reacting positively. It would be interesting to observe how bitcoin reacts in the coming days as the novel coronavirus pandemic continues.