The cryptocurrency market experienced a sudden rally in the previous session after Bitcoin prices soared by more than 10% within a day, despite the ongoing sell-off in global stock markets. At the time of writing, BITCOIN is trading around 6,700.

The surge in Bitcoin also helped other cryptocurrencies gain, with Ethereum and XRP rising by more than 7% and 5% respectively. This month has seen dramatic moves in the crypto market which joined the rest of the financial markets in the sell-off as investors scrambled for liquidity amid rising uncertainty about the economic impact of the coronavirus pandemic.

The heightened uncertainty about the pandemic drove traders out of Bitcoin and other cryptocurrencies just like they moved out of equities and other riskier assets. Analysts expect the rally in cryptocurrencies to be caused by the latest round of stimulus efforts announced by the Fed earlier this week, which helped offer a slight lift to investor confidence.

The market is likely to continue focusing on the performance of cryptocurrencies amid the first economic downturn they are experiencing. Will traders turn to Bitcoin and other cryptos as safe haven assets amid rising volatility in conventional financial markets?