After a very long time, bitcoin moved today. It is just a 3% spike that saw the world’s leading cryptocurrency going from about $9,150 to $9,442 on Bitstamp. However, we have started to slide down, currently trading around $9,330 with $1.47 billion in ‘real’ trading volume.
By crypto market standard, it is a tiny move, but given that bitcoin has been acting like a stablecoin lately, this upwards move brought back the enthusiasm in the market and community.
“Bitcoin awaken from thee slumber. I’m getting fucking bored,” tweeted BitMEX co-founder and CEO Arthur Hayes.
As we reported, Bitcoin has been trading in a tight range for the past few months, which continues to keep on getting tighter. One month bitcoin price range in July actually has been to its historic low of 6%.
Today, bitcoin’s move came as EU leaders reached a €1.82 trillion (over USD $2 trillion) COVID-19 recovery package earlier this morning.
“It is an ambitious and comprehensive package combining the classical [budget] with an extraordinary recovery effort destined to tackle the effects of an unprecedented crisis in the best interest of the EU,” the EU leaders said in a joint declaration.
“Exceptional situations require exceptional efforts,” said German Chancellor Angela Merkel, who said the financial foundations for the next seven years had been laid out.
The small spike in Bitcoin price has OKEx BTC futures open interest surging 7.5% and trading volume increasing 14.5 times within an hour on the platform.
The market is excited but still waiting for the digital asset to break the recent high of $9,500 to “make the reversal a legit signal long.”
“About time we get some price action around here. Meme trendline broke. A daily close above $9,443 would be a higher close on the trend. Close above $9,700, and I’ll feel bullish. Close above $10k, and I’ll market buy in this corn,” said trader Josh Rager.
Today, everything is green.
Nasdaq rose to yet another all-time high to 10,837 only to slide to 10,731. Dow Jones jumped 0.98% to 26,943.
S&P 500 started by recording gains to 3,276 but is currently at 3,268 — the highest level since February and not far from its all-time high of 3,386. And Bitcoin’s correlation with the S&P 500 is still high at 64.6%, as per Skew.
“S&P500 and Bitcoin have been correlated and co-integrated last 10 years. S&P implied BTC price: $25K .. interesting times ahead!” said PlanB.
Precious metals are shining with both gold and silver hitting multi-year highs on stimulus and concern over the coronavirus.
Gold jumped 1.23% to $1,840 per ounce. But it is Silver, which is leading the charge with Citigroup seeing its prices rising to $25 in the next six-to 12 months.
According to economist and trader Alex Kruger, soon, most of the assets will look like silver even though “people will fight it, and the word “bubble” will be used with increased frequency.”
This is because of negative real rates, continued monetary & fiscal stimuli, coronavirus overrated (market over-reacted), and economic recovery.
And the US Federal Reserve has plenty of room yet, with its balance sheet as a percentage of GDP currently standing at 35% compared to the ECB’s 57% and the BoJ’s 118%.
“We moved to the “Fear is Good” stage, the more fear about coronavirus resurgence, the more fear among policy makers. And what do fearful policy makers do? They provide stimulus,” he said.