- The Bitcoin price peaked at $8,970 Wednesday, the highest since early March.
- An upsurge in trading volume and search interest suggest FOMO-buying is back in play.
- Bitcoin will undergo its next halving event in roughly 12 days.
Don’t look now, but Bitcoin is making a fast approach on $9,000–signaling a new wave of FOMO buying among retail investors.
Bitcoin Price Update
After being rangebound for much of April, Bitcoin’s price has been on a steady upward path since last Wednesday. In the span of a week, the cryptocurrency has appreciated 26.5%, or nearly $2,000, according to CoinMarketCap data.
Bitcoin’s spot volume on verified exchanges has surged to $3.1 billion in the last 24 hours. (“Fake” volumes would have you believe that nearly $60 billion worth of BTC traded hands in the previous 24 hours.)
Bitcoin: The Best-Performing Asset of 2020
The status of Bitcoin as a global reserve currency came under fire in late February when the king of cryptocurrencies sold off almost in lockstep with the broader equities market. While the epic flash crash of February and March spared no asset (not even gold), Bitcoin’s performance appeared dangerously correlated with stocks–something its proponents vehemently deny.
Gold also suffered a historic flash crash in late February, but this was mainly due to a liquidity event that forced traders to cover losses in other markets. The yellow metal quickly recovered en route to new seven-year highs.
Still, that hasn’t stopped Bitcoin from reclaiming its rightful place as the top-performing major of 2020. (Before the coronavirus-fueled flash crash, Bitcoin jostled with Tesla as 2020’s best-performing asset.)
About seven hours ago, Pantera capital’s Dan Morehead tweeted:
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Some analysts have attributed the rally to a gradual influx of new investors, while others have pointed to retail FOMO (fear of missing out). Then there are those who proclaim the May 2020 halving event as the biggest driver of adoption.
But not everyone believes bitcoin’s recovery is tied to good fundamentals. Bitcoin may have extended its rally on assurances that the Federal Reserve will do whatever it takes to prop up a sagging economy.
If Bitcoin is as strongly correlated with stocks as it was at the start of the coronacrisis, the latest rally is no reason for Bitcoin bulls to cheer. (Nobody is saying Bitcoin is correlated with stocks, but its performance in recent months does show stronger correlation.)
This article was edited by Josiah Wilmoth.
Last modified: April 30, 2020 1:21 PM UTC
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