Bitcoin, Other Cryptocurrencies Gain Even as Stock Markets Trade Under Pressure

Arslan Butt•Wednesday, March 25, 2020•1 min read

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?

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.