Bitcoin Surging to More Than 15% amid Economic Turmoil

Bitcoin (BTC) prices boosted by approximately 17% in less than a day. At the same time, sustained worries about economic turmoil helped push investors to go toward safe-haven assets.

The world’s most famous cryptocurrency rallied to as much as $7,212.73 earlier. With this, the crypto has risen 17.1% since yesterday afternoon. While talking about the price rally, analysts generally pointed to investor’s desire for safe-haven assets.

Aside from that, Americans filed more than 6.6 million applications for unemployment insurance in the week ending March 28. And these are all from the figures given by the U.S. Department of Labor. Also, over 3.3 million Americans filed claims for unemployment the week before.

The said application came flooding in as businesses around the nation shuttered their doors amid mounting concerns about the novel coronavirus.

Multi-strategy fund Banz Capital founder and CEO, John Iadeluca stated, “The newly updated jobless claims report in the U.S. helped fuel a sharp Bitcoin price increase.”

But he also said that yesterday made a mark as the official start of the second quarter. A common tax incentive for the latest or added capital in the alternative investments market.

In addition to that, the unveiling of the jobless claims reports arrived with the announcement of almost a 50% increase in citizens receiving benefits. This prompts migration of investment to what could possibly be deemed safe-haven assets. And this is because of the data indicating an increase in coronavirus economic fears. Furthermore, the significant increase in gold and commodity futures in the past two days further supported the statement said.

Digital Currency

Crypto-to-crypto derivatives platform Amulet’s managing director, Marouane Garcon, weigh in too.

He said, “People are seeking cover from what they think is going to happen in the traditional markets.”

Garcon also expressed how the headlines are getting scarier as the day goes by, and people are trying to look for a place to go for protection. Though he is not sure if Bitcoin is the safest place, a lot of people are already trying for it.

In addition to that, Digital Capital Management’s managing director Tim Enneking shared a different perspective on the situation. He indicated, “QE1, 2, 3, and infinity took place over years and coincided with the launch of Bitcoin.”

But the recent round of QE will be trillions of dollars in a period of months. According to Enneking, that needs to devalue a currency, except currency value is relative – the exchange rate. And if all of them will debase, they won’t feel the devaluation except against something like BTC, which has a finite supply.

“The current move up – and I predict it will continue – by attributing it to the realization the Bitcoin will be a safe haven – not from temporary economic downturns, but from currency ‘printing presses,'” he said.

Technical Analysis

Meanwhile, several market observers have a different tack. And this attributed to BTC’s latest gains to technical factors.

Cryptocurrency hedge fund manager BitBull Capital CEO, Joe DiPasquale, stated, “On April 1, the price bounced off $6,157 and continued that momentum today to reach $7,200 after which profit-taking brought it below $7,000 – the resistance was previously identified.”

Also, the London-based digital asset firm Bequant’s head of research, Denis Vinokourov, noted that the stops being tripped on the break of the $6,900 to $7,000 range exacerbated the recent boost higher. And this sent the Bitcoin price surging to the $7,300 zone.

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