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Bitcoin soars in tune with Wall Street


It seems that financial markets are finally beginning to see the light. Now that, after days of suffering sharp falls in its price, the New York Stock Exchange has started to rise once again. This occurs at the same time that Bitcoin shoots up and gold also manages to increase its value. Showing an overview of general recovery in world markets.

The Coronavirus economic crisis

It’s only been a couple of weeks since the outbreak of the Coronavirus crisis. Although the disease born in Wuhan, China, had been a topic of conversation in the western world for months, it was not until the outbreak of COVID-19 managed to settle in Iran and from there go to Italy, that we really began to see the worst consequences of it.

A few days after the spread of the disease took hold in Italy, the collapse in the oil markets began. After a failed attempt between OPEC and Russia to agree on production cuts, to protect the value of a barrel, ended a price war between Russia and Saudi Arabia, which has the price of crude oil on the ground since then.

From there everything went downhill for the financial markets, with falls between 8 and 9.80% daily on the main stock markets in the world. Being the New York Stock Exchange one of the most affected, being the epicenter of the international financial system.

However, the fall in the price of assets did not stop there. Well, simultaneously with oil and stock exchanges, gold and Bitcoin also collapsed. Contrary to the economic logic that postulates that in times of crisis, value reserve assets maintain or even increase their price.

Bitcoin shoots up alongside gold and the stock market

The economic crisis caused by the Coronavirus showed that it did not resemble other financial collapses in the past. Rather, its effect was being much more structural to the entire economy. By having investors withdraw their confidence not only in traditional markets, but also in financial assets such as Bitcoin and gold.

Something that could be starting to change from today, when the New York Stock Exchange has begun to emerge, in what is its best day since 1933. Spurred by the prospects favorable to a political agreement in the US Congress, for a multimillion-dollar stimulus package to the national economy.

The New York Stock Exchange is experiencing its best day since 1933. Source: Yahoo Finance

An optimism that has not only reached the New York Stock Exchange, but has also boosted the price of gold, the active reserve of value par excellence. Which has seen an upturn today with Wall Street, as we can see in the follower of the crypto trend gold price, brought in alliance with the Plus 500 broker:

The price of gold has been infected by optimism on Wall Street
The price of gold has been infected by optimism on Wall Street

But that is not all, because in the midst of the wave of optimism generated in the markets by the possible proximity of a political agreement in Washington, at the moment the Bitcoin is shot together with the other important assets of the world. Having increased 6.46% in the last 24 hours, to $ 6,743 per BTC:

Bitcoin shoots up alongside the world's main assets. Source: Coindesk
Bitcoin shoots up alongside the world’s main assets. Source: Coindesk

In this way, the markets seem to be recovering a little of the confidence lost due to the appearance and advance of the Coronavirus. Despite this, we must be aware that this crisis has only just begun. Therefore, we cannot take today’s events as an indicator of what will happen in the next days or months in the international economy.

What do you think, will the tuning between Wall Street and Bitcoin be maintained? Let us know in the comment box.

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