Bitcoin has continued to strengthen over the past few hours, rallying as high as $6,850 on Tuesday morning and now trading at $6,790 as of the time of this article’s writing. According to data from TradingView, the cryptocurrency has gained 4% since the trading session started, marking yet another day of gains.
BTC remains below the multi-week high of $7,000, though seems poised to push back towards that key level over the next few days as an uptrend has seemingly started to form; indeed, since the $3,800 bottom, Bitcoin has gained more than 75% and has posted gains of more than 20% in the past few days alone.
The cryptocurrency market’s rally comes as the stock market has seen a stellar day of gains by any standard. The S&P 500 index has gained 10% while the Dow Jones has seen a rally not seen in literal decades, rallying by more than 11% on the trading session in a move that has left many astounded.
This rally seemingly comes as a result of two news events:
The coronavirus stimulus bill, which will help businesses and Americans, is close to being passed by Congress. There was some uncertainty about the bill previously (including a mention about a “digital dollar” that could help Bitcoin), but that is getting resolved.
On Monday the U.S. Federal Reserve revealed it will be implementing the purchasing of corporate debt, Treasuries, and mortgage-backed securities until the economy normalizes again. While the word “infinite” was not mentioned in the Federal Reserve’s press package on this news, many economists and analysts in the Bitcoin space have dubbed these measures “QE Infinity,” as the central bank has seemingly put no limit on how many assets it can buy in the foreseeable future.
DOW +11%. Wild. How many times will we see this again in our lifetimes.
— Adam Singer (@AdamSinger) March 24, 2020
Bitcoin Readying to Rally Higher
Many think that BTC is ready to rally higher.
In an interview published on Saturday, Raoul Pal — ex-head of Goldman Sachs’ equity derivatives business and the current CEO of Goldman Sachs — remarked that he thinks the price of Bitcoin will rally to its $20,000 all-time high within the coming 12 to 18 months, despite the current crash seen in global markets.
This interview was released shortly after he remarked that he is more bullish than ever on Bitcoin, remarking that there’s a possibility that “all trust” in the “entire system” has been lost.
Furthermore, Rekt Capital recently noted that the BTC “Fear and Greed Index” — derived from volume, social media volume, amongst other weighted factors — hit 10, which is “extreme fear.”
It’s interesting to see how Bitcoin has recently reached $6700 but market sentiment is still extremely fearful$BTC #Crypto #Bitcoin pic.twitter.com/IgsVzjmqN1
— Rekt Capital (@rektcapital) March 24, 2020