The Price Of Bitcoin Jumped Above $9,300: What Became The Driver For this?
Bitcoin has finally got out of the price range below
Bitcoin has finally got out of the price range below $9,300, in which it has been stuck since June 25. It happened amid growing optimism at key global financial sites. Can we see the consolidation of Bitcoin with growing stock exchanges?
China stock market rally
Despite the growth of new cases of COVID-19 infection, global financial sites are showing a trend towards recovery and growth in key market indicators. Stock markets want to avoid a recurrence of the March crash and are gaining strength amid growing concern in financial circles over the possible start of the second wave of the pandemic.
China today is a good example of how sound government policies can quickly put the economy on a recovery path. In particular, the purchase of shares actively promoted in the Chinese state media, which in turn stimulates the growth of the stock market. Peter Bukvar, an investment strategist at the Bleakley Advisory Group, praises this strategy. He noted:
“If the US stock market is supported by large-scale financial injections by the Fed, in China this role is played by state-owned media.”
According to the latest data, the stock index on key Chinese exchanges CSI 300 closed with an increase of 5, 67% to 4670.09. Experts from CNBC note that the prevalence of a positive trend in the Chinese stock market favorably affected the condition of other financial markets. Although China is experiencing some difficulties due to the US accusation of negligence towards the spread of the pandemic at the stage of its inception, it is he who can launch a wave of growth in financial assets.
US stock market moves up
Amid the stabilization of the situation in China, the US stock market also closed with an increase. In particular, the Dow Jones index rose 1.43%, the S&P 500 by 1.34%. The Nasdaq exchange, which specializes in shares of large innovative companies, demonstrated a new record. Even Donald Trump was unable to restrain his enthusiasm after publishing information on the Nasdaq growth of 0.93%. He wrote on his Twitter: “Nasdaq is growing up.”
Paradoxically, the US stock market is experiencing growth during the increase in the number of new outbreaks of COVID-19, which recorded in different parts of the world now. Why is this happening? Analytics convinces this growth with a gradual increase in consumer activity, the growth of the service sector, and the emergence of information about the successful development by the pharmaceutical centers of a vaccine against infection with COVID-19.
Analyst Andrew Brenner commented on the current situation:
“We see the opposite trend today. With the increasing growth in new cases of COVID-19 infection, stock markets close higher. It contributes to the continued implementation of the Fed’s monetary policy, which aimed at stimulating the country’s economy. “
The growth at major global financial sites had a positive effect on the Bitcoin market position: for the first time since July 5, the price of a crypto asset exceeded the level of $9,300.