After a truly crushing start to the month, the Bitcoin price is rallying hard. The almost 20 percent 24-hour gains for the leading cryptocurrency have seen the return of bullish sentiment to the industry.
Bitcoin Bounces After Battering
After consistent gains over the first weeks of 2020, Bitcoin plunged in tandem alongside other markets amidst recent planet-spanning, coronavirus-inspired panic. With global markets plunging and the Bitcoin price failing to hold up, many have questioned the asset’s utility in the wake of the volatility.
Drastic responses to the mass selloff have seen the Federal Reserve and other central banks get particularly creative with policy. For many of Bitcoin’s most committed, the liquidity injections serve as another good reason to hold the scarce asset.
Negative interest rates have arrived in the US! 6mo t-bill at -2bps. Means you need to PAY US govt for 6mo cash deposit. Rates to go much more negative to weaken dollar. This is confiscation and it is bad but it needed for now to stabilize system. Mega bullish for #Bitcoin pic.twitter.com/mwgEhnXKsD
— Dan Tapiero (@DTAPCAP) March 19, 2020
Economic Stimulus Packages in response to #CoVid19
UK : $39 billion US : $1.2 trillion France : $45 billion NZ : $8 billion Italy : $28 billion Canada : $56 billion South Korea : $10 billion India : Janata Curfew & Clapping hands in the Balcony on Sunday
— Srivatsa (@srivatsayb) March 19, 2020
For now, the central bank measures seem to be working as intended. The US stock market crept higher today, proving that some appetite for risk was indeed returning to markets. [Bloomberg]
Bitcoin has been performing well too. Over the last 24-hours, investors bought up more than $18 billion worth of the cryptocurrency. At the time of writing, a single Bitcoin trades for just under $6,200. Prior to today’s moves, it was down at $5,200.
Can Bitcoin Hit $10,000 by the Halving?
With the rising price, an air of bullishness is returning to the Bitcoin industry. Some reasoned that the gains coinciding with central bank liquidity injections were proof that BTC is functioning as a hedge against such policies:
Within less than a day of the two largest central banks in the world printing a combined $2 trillion of their paper money, Bitcoin's price surges +20%.
Bitcoin is working as designed.
— Vis (@Vis_in_numeris) March 19, 2020
Of course, it wasn’t long before the return of optimism inspired the return of bullish Bitcoin price predictions. Earlier today, Samson Mow of Blockstream nailed his colors to the proverbial mast with a rare price call.
— Samson Mow (@Excellion) March 19, 2020
In the above tweet, he states that Bitcoin will trade above $10,000 again by its halving in May. Just a month ago, such a prediction might have been seen as bearish. However, with Bitcoin needing to gain more than 60 percent in two months, and having just endured some of its most extreme volatility to date, traditional market analysts would find Mow’s price call questionable.