Bitcoin Rehabilitation: BTC Price Almost Recovered After March Collapse
he spread of Coronavirus was a powerful blow to financial markets and as a result, they could not contain the panic and fell to the bottom in March. However, for a month, both the stock market and the cryptocurrency market were able to build up strength and shake off after a loud fall. Crypto analyst Luke Martin noted that Bitcoin was able to cope with the existing problem on its own, while the stock market recovered thanks to helping from the government.
Bitcoin handled alone unlike traditional assets
On Twitter, a crypto analyst Luke Martin focused on the fact that Bitcoin was able to rehabilitate itself. He noted:
Unprecedented measures by the US government have become a driver for stock market recovery. In particular, this is FED’s announcement of the press of $2,2 trillion to stimulate the economy and overcome the negative consequences associated with the spread of coronavirus. The stock market reaction was immediate: on April 21, the S&P 500 index increased by 22%.
In the current environment, this decision may become a lifeline for millions of people, but many analysts are wary of the future. Printing a colossal amount of dollars could turn into a new economic crisis, the impending consequences of which are often compared with the Great Depression. Significantly, Bitcoin saw the world precisely after the global economic crisis in 2008.
The oil market still can not recover after the fall and in recent weeks has been steadily showing anti-records. Now, May oil futures are trading in the red, and this does not bode well for the market and the global economy in the future. Under these conditions, oil-producing countries are forced to review their policies and reduce the supply of “black gold” to the market.
Against the backdrop of traditional markets, Bitcoin has demonstrated its viability. The flagship cryptocurrency was able to recover solely due to its market power, without external interference and financial injections.
Is Bitcoin So Strong?
Bitcoin’s enthusiasm for market power bit “dropped to the ground” a statement by the FTX director. He suggested that in March, the price of Bitcoin could drop to zero if BitMEX did not help in time.