Bitcoin continues with its upward momentum as the world’s largest cryptocurrency inches higher third-day in a row. In the late hours on Tuesday, January 28, the Bitcoin price surged close to $9400 levels.
With today’s price surge, Bitcoin has added $2000 to its price since the start of this year 2020. In just the first 28 days of 2020, Bitcoin has given over 30% returns to its investors. At press time, Bitcoin is trading at a price of $9349 with a market cap of over $170 billion.
Bitcoin’s price surge this month is the outcome of several geopolitical events around the globe. Earlier, it was the rising tensions between the U.S. and Iran, and now it is the outbreak of the coronavirus in China. The stock market has already reacted negatively to the coronavirus outbreak. Both – the Dow Jones Industrial Average and the S&P 500 index have plunged nearly 1.5%.
However, the cryptocurrency market has reacted positively to it. In the last 24-hours, the overall cryptocurrency market has added $10 billion to its valuations. Besides, as Coinspeaker reported yesterday, the Bitcoin to gold correlation has turned positive. This is a great sign which shows Bitcoin’s higher preference over the yellow metals as a store of value.
Asia-Driven Bitcoin Price Rally
Su Zhu, co-founder of Singapore-based crypto investment firm Three Arrows says that the uncertainty triggered by the outbreak of Coronavirus is moving investors towards Bitcoin. He said:
“[BTC] rally looks Asia-driven with the Chinese equity market reopening after holidays has been delayed due to the coronavirus, so traders itching for activity may have set their sights on the 24-7 crypto markets in the meantime”.
Jehan Chu, co-founder and managing partner at Kenetic – a Hong-Kong-based blockchain investment and trading company – said that with this highly volatile macro environment, Bitcoin seems less risky as of now. Speaking to Coindesk, Chu said:
“The recent surge in bitcoin price is merely a prelude to a much larger move upwards that has been building up over the past several months. A steady wave of shocks including Iran turmoil, U.S. Political strife, and now coronavirus destabilizing the public markets is pushing investors to seek alternative shelters for capital.”
Apart from Bitcoin, other top-five cryptocurrencies are showing gains anywhere between 3-10%. This is a good sign of collective participation by other digital currencies.
With today’s price surge, Bitcoin has made a new 2020-high and we expect this momentum to continue in the near term.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
