Bitcoin spikes by over 21% as rebound takes the price to $6,500 while altcoins follow with huge gains.
Positivity comes as several governments inject stimulus packages meant to cushion against the impact of Coronavirus.
Bitcoin price surges to post huge returns
Bitcoin (BTC) price has spiked higher following a 24-hour rally that sees most major cryptocurrencies trade in the green.
As at 8:45 UTC, BTC/USD was up 21.36%, a spike that adds to yesterday’s +10% surge. The price of bitcoin is now well above $6k after breaching resistance at $5,500 on Thursday. According to Coin360, BTC is exchanging hands at $6,554 (Friday, March 20, 2020, 8:45 UTC). Prices, however, remain lower than what BTC traded at the start of the year when it was valued above $7k.
Altcoins are also up, riding a renewal of positive moves. Ethereum (ETH) +22.6%, XRP +14.4%, Bitcoin Cash (BCH) +26% and Litecoin (LTC) +18% are all posting double-digit gains.
Total market capitalization has also increased, adding over $29.9 billion in the past 24 hours. At press time, data on crypto tracking site Coinmarketcap shows that the crypto market capitalization has risen to $182.8 billion. Bitcoin’s dominance is 64.5%.
On Thursday, Chainalysis released a report that showed Bitcoin price had stabilized after the most recent sell-off.
BTC spike follows governments’ bailout plans
During last week’s sell-off, Bitcoin crashed nearly 50% to hit a low of $3,800. Prices have since stabilized, with much of the week seeing the cryptocurrency trade above $5k. Bitcoin’s spike sees it break above $6k, and that comes amid a global effort to stem the spread of COVID-19 spreads.
Stock markets have crashed hard on account of coronavirus, the Dow hitting record lows and wiping gains made since 2017. But with all signs pointing to a global recession, governments have stepped up their bailout plans.
The U.S has pumped $1.1 trillion into the economy, with the EU coming on board yesterday with a €750 billion package. The European Central Bank (ECB) has indicated that there are “no limits” to what they can do financially to help deal with the coronavirus.
The U.K., France, Italy, Germany, Canada, and South Korea have also rolled out stimulus packages.
Markets in the U.S. and Europe have reacted positively to the measures although much still needs to happen on the health front to stem any further rot. The Dow closed in the green on Thursday after yet another circuit breaker. The FTSE 100 is up 3.4%.
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