It looks like bitcoin’s status as a “safe haven” asset is no longer being questioned. After weeks of people wondering whether bitcoin could sustain a person’s wealth during times of economic strife, the token is finally starting to earn a little bit of respect and attention.
More Bitcoin Buying Opportunities Are Emerging
Many banks and financial institutions abroad claim to be offering new methods of purchasing bitcoin and assorted cryptocurrencies to be added to users’ portfolios, and buying rates have shot up significantly. The European Central Bank, the Federal Reserve and the Bank of England have all introduced investors and clients alike to what they’re calling new “asset-purchase schemes,” many of which involve ways of buying bitcoin and assorted crypto.
Purchases of BTC have thus surged by more than 20 percent over the last 24 hours, which may be why the currency is up by as much as 21 percent at the time of writing (the asset is presently trading for nearly $6,500 – about $1,600 higher than where it was earlier this week).
Naeem Aslam – a chief market analyst at Ava Trade – explained in a newsletter:
When it comes to bitcoin, the crypto king is on fire, and we have seen a decent rally. Given the fact that the price has crossed the $6,000 mark – an important level of resistance – the upward momentum is likely to pick up the pace, and if the price crosses the 200-day moving average on a daily time frame, it would be a huge buy signal.
In addition, crypto trading amongst exchange customers has also gone up by large margins. Coinbase, Bitstamp, Bitfinex and similar trading platforms have all reported trading volume bursts of about 19 percent or more over the past 24 hours, suggesting that some of the fear and panic has dissipated in recent days.
How Do We Know if This Is a Rally?
It’s likely that speculators are already starting to jump in [to bitcoin] because they feel a big buy order may be coming. It will be interesting to see if demand continues to increase over the days to come and whether we start seeing some more prominent higher highs and higher lows in price action. This would give me more confidence that a recovery is on the cards. We’re not out of the woods yet.
The past two weeks have been some of the worst for cryptocurrency everywhere. Bitcoin, for example, was trading beyond the $10,000 mark in mid-February, though it dropped into the high $4,000 range once the coronavirus pandemic was declared a national emergency. Ethereum and bitcoin cash were both tradings at well over $200 and $400 respectively, though both currencies ultimately fell to the low and mid-$100 ranges not long after.