Bitcoin is rising in line with Wall Street
It seems that the financial markets are finally seeing the light of day. After days of sharp price drops, the New York Stock Exchange has started to rise again. This is happening at the same time that Bitcoin is skyrocketing and gold can also increase its value. Provide an overview of the general recovery on the world markets.
The Corona Virus Economic Crisis
Only a few weeks have passed since the outbreak of the coronavirus crisis. Although the disease, born in Wuhan, China, has been a topic of conversation in the western world for months, we were only able to determine the worst after the outbreak of COVID-19 in Iran.
A few days after the spread of the disease in Italy, the oil markets began to collapse. After a failed attempt between OPEC and Russia to agree on production cuts to protect the value of a barrel, a price war between Russia and Saudi Arabia ended, with the crude oil price on the ground from that moment on.
From then on, the financial markets went down with a daily decline of between 8 and 9.80% in the world’s major stock markets. The New York Stock Exchange is one of the most affected and the epicenter of the international financial system.
However, the decline in asset prices did not stop there. At the same time as the oil and stock exchanges, gold and bitcoin collapsed. Contrary to the economic logic that postulates that value reserve assets maintain or even increase their price in times of crisis.
Bitcoin shoots up alongside gold and the stock market
The economic crisis caused by the corona virus has shown that it has not been like other financial collapses in the past. Rather, its impact on the entire economy was much more structural. By withdrawing their confidence not only in traditional markets, but also in financial assets such as Bitcoin and gold.
Something that could change as of today when the New York Stock Exchange begins to emerge best day since 1933. Spurred on by favorable prospects for a political agreement in the US Congress, for an economic stimulus package worth several million dollars for the economy.
An optimism that not only reached the New York Stock Exchange, but also pushed up the gold price, the active value reserve par excellence. What has seen an upswing today with Wall Street, as we can see from the successor to the crypto trend gold price that was introduced in collaboration with the Plus 500 broker:
But that’s not all, because in the midst of the wave of optimism created in the markets by the possible proximity of a political agreement in Washington, Bitcoin is currently being shot along with the other major assets in the world. After rising 6.46% in the last 24 hours to $ 6,743 per BTC:
In this way, the markets seem to be recovering somewhat from the confidence that has been lost due to the appearance and progress of the corona virus. Nevertheless, we have to be aware that this crisis has only just begun. Therefore, we cannot take today’s events as an indicator of what will happen in the international economy in the coming days or months.