The flagship of the cryptocurrency plays CoiPlesports while Wall Street plunges into red.
Tl; Dr.
- US stock markets experience a historical fall and cause investors’ concerns.
- Bitcoins, on the other hand, show some stability and even start to bounce.
- This resistance intrigues analytics, but caution remains in the face of market volatility.
Economic context under voltage
US stock markets are undergoing an exceptional period of turbulence. As for the new tariff measures imposed by the United States on its main business partners. This policy has triggered a wave of panic among investors. Dow Jones lost more than 2,200 points in a drop of 1679 points a day before. This is the worst performance in two days in the history of the index. This situation leaves traditional investors especially concerns about the coming days. In this context, some alternative assets again attract attention.
Bitcoin in anticipation of action
Unlike events, Bitcoin showed some resistance during this crisis. While the stock markets rushed, the cryptocurrency has seen an increase of 2.2%in the last 24 hours. Joe Burnett, an analyst Unchained, considers this to be a behavior similar to the behavior of 2020. At that time, Bitcoin was the first to recover after the crash in March. This phenomenon can be repeated well, the cryptocurrency has not touched new cavities since 11 March. This strengthens the idea that Bitcoin plays the role of a “barometer” to reverse trends. A perspective that is increasingly attracting institutional investors.
Volatility that becomes an asset
Bitcoin remains a highly volatile asset that often pushes investors to divide it during stress. However, the same volatility also accelerates its ability to bounce. Joe Burnett explains that the sale of bitcoins is often fast and brutal, allowing cryptocurrency to achieve its low point faster than action. This could explain why BTC already shows signs of recovery. This atypical behavior draws attention to the climate of strong uncertainty. Bitcoin thus becomes an indicator of early stabilization. For some investors, this could even serve as a temporary refuge.
Always caution
Despite encouraging features, analysts remain careful about the development of bitcoins. Joe Burnett remembers that if the decline in stock markets continues, BTC is unlikely to be spared. Investors’ trust remains fragile and the trend can quickly reverse the volatility of the surrounding area. The index of the feeling of individual investors (AAII) fell on 13 March to 19.11 %, the lowest level of pandemic. This extreme pessimism can be a sign of conversion, but also persistent nervousness. It is therefore too early to close a solid recovery. Bitcoin could still experience short -term tremor.