Bitcoin Holds on to $7200, Gold Closes at 8 Year High during an Economic Frenzy

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Bitcoin Holds on to $7200, Gold Closes at 8 Year High during an Economic Frenzy

  • Global equity benchmarks, the Dow Jones Index and S&P 500 Index skyrocketed to log best weekly gains 1974.
  • Gold records a 2.3% rise as heads closer to $1700 mark.
  • Bitcoin price stays above $7,200 with low volatility in the last couple of days.

The employment numbers in the US soared to $17 million in the last three weeks due to the unprecedented lock-down due to coronavirus pandemic. Nonetheless, stocks rose on the Fed’s stimulus of $2.3 trillion to aid businesses in the country from the economic problems.

Jesse Powell, the Chairman of the U.S. Federal Reserve noted that,

There’s every reason to think we can be back on the road to recovery fairly quickly and that it can be a fairly robust recovery.

The Coronavirus numbers are beginning to reveal that the worst might be behind us now. The curve seems to be flattening in the US, while Italy, France and other European stocks are posting a lower number of cases as well. In all probability, business activity can resume in a couple of weeks.

The stock markets have marked the 50% retracement level from the initial drop around mid-March. However, the reaction seems to have come far earlier than anyone expects.

Safe-Haven View

Moreover, the price of Gold and Oil suggests that the economic situation is not entirely healthy. Oil which showed signs of recovery at $28 earlier this month, slumps back to lows at $22. The demand for energy is extremely low as global lockdown continues.

Furthermore, Gold closed at a new All-Time High suggesting that the investors are also inclining towards ‘safe-haven’, as uncertainty continues to increase. The price of Gold on 9th April closed at $1681, an eight year high, the previous high was recorded before the COVID-19 panic drop in March.

gold usd price
Gold/USD 1-Day Chart on Coinbase (TradingView)

Bitcoin stands to benefit from this view as it is beginning to de-couple from the stock markets as well. Yesterdays’ rise in the stock markets was not echoed across the crypto-markets. Bitcoin is holding on to its gains above $7250 holding the 50-Day EMA (Exponential Moving Average) as support.

btcusd daily chart
BTC/USD 1-Day Chart on Coinbase (TradingView)

Fundamentally, the current view gives ample reason for mistrust in the long-term sustainability of the Federal Reserve policies and the effect of a recession on the global economy. However, short-term uncertainty continues to linger around all asset classes.

Do you think Bitcoin will rise as the trustless monetary system? Please share your views with us. 

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Bitcoin Holds on to $7250, Gold Closes at New ATH during an Economic Frenzy
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Bitcoin Holds on to $7250, Gold Closes at New ATH during an Economic Frenzy
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The employment numbers in the US soared to $17 million in the last three weeks due to the unprecedented lock-down due to coronavirus pandemic.
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CoinGape
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Author: Nivesh Rustgi
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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Nivesh Rustgi 1151 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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