Bitcoin Recovery Reaches $9,000, Leaving Stock Market in the Shadows

Written by: FIMA Plus

Bitcoin (BTC) surpassed the price of $9,000 at 3:30 AM UTC. The recovery of this cryptocurrency’s price far exceeds the market benchmark Dow Jones Industrial Average.

Bitcoin is once again the best-performing asset in 2020

Since it hit a low of $3,850 on March 13, bitcoin has risen over 130%. For comparison, the Dow recently peaked at nearly $24,750, and since March 23, when it was at a low of around $18,210, it has only risen about 36%.

All markets fell in March due to fears of the coronavirus

Measures to prevent the spread of the coronavirus in the U.S. came into effect in the first half of March as businesses closed and citizens remained in self-isolation at home. Bitcoin fell by more than 50% during the period between March 12 and 13, and on some exchanges, it dropped to levels near $3,850.

Meanwhile, major markets also plummeted, including a 10% drop in the Dow. However, the Dow continued its downward path even after March 12, experiencing a recent drop on March 23. In contrast to the stock market, from March 13, when BTC was at its lowest, until today, bitcoin has achieved a significant recovery.

News of the bitcoin halving could also play a significant role in the rise of cryptocurrency prices

As the stock markets and the crypto market continue to recover, there is one underlying driver that may be behind the drastic rise in bitcoin’s price – halving. Bitcoin halving refers to the halving of the issuance of ‘mined’ new BTC into the cryptocurrency market as miners will receive half as much bitcoin for their work. This event occurs every four years and is a mechanism by which the inflation rate of bitcoin is reduced.

With the halving set to occur in 12 days, the halving of bitcoin has sparked much discussion, as previous ‘halving events’ ultimately led to drastic price increases.

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