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Bitcoin has become the most effective asset

Apr 30, 2020 Forex News

Bitcoin's price increase of $1000 over 24 hours gave an impetus to the entire cryptocurrency market. As a result of the rally on April 29, Bitcoin was able to fully recover from the sad March decline. On April 29, Bitcoin began to rise from $7762 and finished the day at $8790. However, today Bitcoin is showing a reverse movement, and the price dropped to the $8693 area at the time of publication.

However, despite today's decline, Bitcoin has become the most effective asset in 2020. He was able to recover from the March decline, which was triggered by the COVID-19 pandemic. In March, as a result of the pandemic, institutional investors hastened to liquidate their positions in order to offer more liquidity in the traditional market. A series of sales sent Bitcoin below $5000. However, the price was able to rise above $8000 within a month. The March collapse showed a close correlation between Bitcoin and the S&P 500 index. However, this correlation was disrupted yesterday. It became the reverse, as BTC grew by + 11% since the beginning of the year, and the yield of the S&P 500 since the beginning of the year was -11%. Thus, institutional investors began to withdraw their capital from the traditional market and invest it in digital assets. After some countries began to weaken quarantine, the crypto asset market again began to interest investors.

Some analysts claim that yesterday's rally was caused by the approaching halving. Other analysts conclude that the options market does not expect multiple increases in the price of Bitcoin after halving, but is more concerned about its possible decline.

Macroeconomic factors such as Covid-19 and stock market volatility may play a more important role in the Bitcoin price movement than halving.

Don’t compare the 2016 market with the current one - it is much more developed and the influence of miners can significantly decrease compared to the previous halving.