Bitcoin is on its way to reinstating its reputation as a safe haven asset as it rallied by more than 10% in the past 24-hours.
The sudden move to the upside coincided with a further correction in global stock market indexes, with the Dow Jones and FTSE100 tumbling towards key levels of support.
At the time of writing Bitcoin is trading above $5,600 as it takes aim at the $5,800 level of resistance after consolidating over the past week.
A break above $5,800 moving into the typically low-volume weekend will be key for Bitcoin if it is to continue rallying until May’s halving event.
However, a rejection from this level could prompt a test of last week’s low of $3,600, which would in itself come alongside an abundance of fear and panic from investors.
The fact that Bitcoin seems to be finally decoupling with the stock market is undoubtedly bullish in the short term, with the global economy facing a daunting task to recover from the impact of coronavirus.
If a sudden spike in cases or mortality rates comes to fruition it would almost certainly worsen the plunge in global equities, especially as economic stimulus from developed nations has already been squeezed.
This is when Bitcoin will need to perform as many thought it would; by acting as a hedge to the traditional financial system in the same way gold has for decades.
That belief has been damaged over the past month with Bitcoin losing half of its value while several altcoins have fallen by more than 70%.
But the recent show of strength has clawed back the negative perception, with investors now eyeing up Bitcoin ahead of a potential breakout.
Current live BTC pricing information and interactive charts are available on our site 24 hours a day. The ticker bar at the bottom of every page on our site has the latest Bitcoin price. Pricing is also available in a range of different currency equivalents:
US Dollar – BTCtoUSD
British Pound Sterling – BTCtoGBP
Japanese Yen – BTCtoJPY
Euro – BTCtoEUR
Australian Dollar – BTCtoAUD
Russian Rouble – BTCtoRUB
In August 2008, the domain name bitcoin.org was registered. On 31st October 2008, a paper was published called “Bitcoin: A Peer-to-Peer Electronic Cash System”. This was authored by Satoshi Nakamoto, the inventor of Bitcoin. To date, no one knows who this person, or people, are.
The paper outlined a method of using a P2P network for electronic transactions without “relying on trust”. On January 3 2009, the Bitcoin network came into existence. Nakamoto mined block number “0” (or the “genesis block”), which had a reward of 50 Bitcoins.
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As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.