The price of Bitcoin is approaching its best level in recent days. Among the main altcoins, DASH is the most prominent with an increase of more than 25% in 24 hours.
After experiencing red days due to the widespread fear of the coronavirus worldwide, last March 19th, the cryptocurrency market showed positive numbers again. In recent days, the price of Bitcoin has risen by more than 12% and is approaching the USD 6,000 level again, which it had lost almost a week before.
At the time of writing this article, the value of Bitcoin in the market is above USD 5,800, according to data from CoinMarketCap. The same source indicates that the price of the cryptocurrency had not exceeded that level since last March 13th.
The rest of the market followed Bitcoin in its rise between March 18th and March 19th. Among the main altcoins, the behavior of DASH is the most prominent as it has gained more than 25% in its price and is currently above USD 59.
Other top cryptocurrencies according to their market capitalization have also increased by over 10% in the last few days. Among them are Tezos (XTZ), Cardano (ADA) and Chainlink (LINK), which have increased by more than 14%. Meanwhile, Ether (ETH) has risen by more than 11% and currently has a price of over USD 125. Currently, there are no cryptocurrencies with a market capitalization above USD 40 million in the red.
Bitcoin Decouples from Traditional Markets
Until now, the behavior of Bitcoin and other cryptocurrencies has been coupling to that of traditional markets. The drop in indices such as the Dow Jones or the S&P500 had found support from the main cryptocurrency.
However, the rise in their prices on March 19th seems to distance cryptocurrencies from events in other markets. Analyst Willy Woo, recognized for developing metrics on Bitcoin activity, considers that it is necessary to have a confirmation of the separation between Bitcoin and other markets.
Through his Twitter account, Woo highlighted the importance of that confirmation to see Bitcoin taking its path in the market. In this respect, he shared some charts showing the behaviors of Bitcoin and gold in the last few days, which would be suggesting that separation.
This occurred just two days after the correlation of Bitcoin with the S&P500 reached a record high. According to data from Coin Metrics, last March 17th, the Pearson correlation index between the two markets reached a cap of 0.59. According to records of the firm, on March 18th, that index fell slightly to 0.58. Up to that point, it remains above the previous high, which was 0.52.
On March 18th, Bitcoin had already begun to exhibit signs that were different from those of other markets. On that day, Bitcoin held above USD 5,000 with a drop slightly higher than 1%, whilst the S&P500 fell as low as 8%. Similarly, the Dow Jones lost the USD 20,000 mark and the oil markets suffered a further collapse.
By Alexander Salazar