Bitcoin is On Fire

Bitcoin is once again climbing, making gains alongside wider markets – with the bitcoin price up 12% over the past week and powering into the second quarter.

The price of bitcoin is up nearly 6% over the last 24-hour trading period, outperforming almost all major indexes despite stocks across Europe following slightly higher Asia.

Bitcoin, cryptocurrency, and equity markets have all climbed as investors worldwide are shining the early signs of locks in counties around the world beginning to slow the spread of the COVID-19 coronavirus.

The bitcoin price has once again crossed the $ 7,000 per bitcoin level, climbing to $ 7,170 on the Bitstamp exchange in Luxembourg – up about $ 1,000 at the same time seven days ago.

Before the coronavirus crisis, Bitcoin investors were better off at the start of the year, a survey of bitcoin and cryptocurrency exchange users showed a high level last month, with most expecting the bitcoin price to soar to over $ 20,000 per bitcoin in 2020.

Across Europe markets added between 2% and 4% by noon after major Asian markets finished the day up by around 3%.

“[Bitcoin and cryptocurrency] purchases follow the signs of improving sentiment in the stock markets, “said Alex Kuptsikevich, senior financial analyst at the FxPro.

“As soon as risk assets start actively attracting demand, institutional investors can also increase their positions in the cryptocurrency.”

“Investors are moving away from pessimism,” AvaTrade chief market analyst Naeem Aslam wrote in a note to clients, adding that if locks were removed prematurely a second coronavirus wave could strike “with greater intensity [and] we could be in a period of a longer recession. ”

Gold, a so-called safe haven asset in times of economic uncertainty, has also jumped over 1% to a peak of more than a week – suggesting that fears of a global recession caused by a coronavirus continue to worry investors.

Last week, reports of rising demand for bitcoin led some to recall bitcoin’s epic 2017 rally that saw the bitcoin price rise from less than $ 1,000 at the start of the year to around $ 20,000 in less than 12 months.

“I haven’t seen so much organic new interest in bitcoin since early 2017 in my non-crypto circles,” well-known crypto investor Ari Paul, co-founder and chief investment officer of BlockTower Capital, said via Twitter.

US president Donald Trump has said he sees signs that the incidence of coronavirus in the US may be leveling, while warning that the country needs to prepare for a “deadly time” ok ”over the next two weeks.

Trump has previously said he hoped the United States could be back at work by Easter Sunday, April 12. It is thought that about one in four Americans is currently home from work.

New York governor Andrew Cuomo has said, however, that it is too early to call a plateau of the epidemic the mainstay of the coronavirus, with the number of daily deaths in New York dropping slightly to 594 yesterday.

Elsewhere, there have been signs that the coronavirus pandemic is being brought under control in Italy, Germany, France and Spain with fewer new cases being reported.

Amid the green shoots of recovery, others are less active.

“I think the balance of probabilities is that this is a much longer event – in terms of economic effects – than anyone is pricing in,” former Goldman Sachs fund manager Raoul Pal, who is the chief executive of the research outfit Global Macro Investor and founder of the business and finance media platform, Real Vision, at the Lindzanity’s podcast last week.

Pal, a well-known bitcoin bull, has warned coronavirus crisis will caused history’s worst insolvency event, when moving 25% of its portfolio to bitcoin.