Bitcoin’s price increased substantially over the past few days, breaking a lot of important resistance levels on its way up. The cryptocurrency touched $9,500 but has since retraced to its current trading price at around $8,900.
In any case, this staged it for a full recovery from the mid-March selloff while equity markets are yet to regain their strength.
The past couple of days have been nothing but interesting for Bitcoin as its price marked yet another serious increase, completing the full recovery from the mid-March selloff.
As CryptoPotato reported back then, Bitcoin was highly correlated with equity markets that experienced one of their largest historic decreases. However, things appear to be changing now.
As seen in the above chart, Bitcoin’s price is increasing while the S&P 500 is having hard times and gold stagnates. Legacy markets are currently closed but S&P 500 futures mark a decrease upwards of 2%, hinting at a potentially negative open. Gold is also charting slight losses today, down about 0.5% at the time of this writing.
Many experts have stated that Bitcoin needs to be in a league of its own, completely disconnected from legacy markets. This would allow it to establish itself as a viable alternative and enable it to fulfill its original purpose.
Bitcoin’s halving is estimated to take place in exactly eleven days from now. This is one of the most important events in the network’s progression as it will slash the block rewards in half, potentially reducing the supply of freshly minted bitcoins on the market a lot.
Historically, the halving has been a massive bullish catalyst as the price has always increased in the year after it. While history is no indicator, the recent positive developments might be indicative of increased demand prior to the halving.
If Bitcoin fails to decouple from legacy markets, however, the effects on its price might not be as expected. This is mainly because economists are predicting a serious ongoing financial crisis that was sparked by the spread of the novel coronavirus (COVID-19).
