The bitcoin price advanced more than 20% in the last week

When analyzing the movements of the price of bitcoin (BTC) from March 18 to the current date, it is observed that the cryptocurrency grew approximately 24% in the last seven days.

Assessing the dynamics of the price of bitcoin during the last week requires taking into account some important events in the global economy, including the fact that the US Federal Reserve. USA has announced that it will have no limits when buying assets to minimize the economic impact generated by the coronavirus pandemic.

Prior to this, the price of the cryptocurrency was already decoupling from the behavior of the stock market. After the announcement, both gold and bitcoin have seen increases, while the world’s traditional stock indices, such as the Standard & Poor’s 500 (United States S&P 500) and the Euro Stoxx 50 (Europe), reach historical rates.

The firm Coin Metrics recalls, in its report published on March 23, the drop in the price of bitcoin on March 12, which caused the liquidation of large amounts of futures contracts. He adds that the decline caused the flight of several market participants, which has now reduced liquidity in trade (spot operations). At the same time, they point out that experienced traders have been betting on high volatility, allowing them to take favorable positions.

In this context, for March 18, the bitcoin price remains at the threshold of USD 5,000, according to data from CoinmarketCap. On that date, the daily volume was in the range of USD 36,000 million. At the end of the day bitcoin was trading at $ 5,288.

2020-03-26

Leave a comment