The price of Bitcoin (BTC) jumped more than $100 when Wall Street opened on March 24, with markets generally winning amid hopes that the U.S. would accept a $2 trillion coronavirus rescue package.
Bitcoin (BTC) price stabilizes as stocks bounce
Data from Coin360 and Cointelegraph Markets showed that the BTC/USD was close to $6,700 at the close of the day on Tuesday, up 7% on the day.
Stock markets reversed Monday’s losses: the Dow Jones opened with a 6.1% gain, while the S&P 500 was up 5.3%.
The week had begun in uproar, as the two major U.S. political parties repeatedly blocked an aid package aimed at rescuing the weak economy. Overnight, however, Treasury Secretary Steven Mnuchin said the talks had made “a lot of progress”.
At the same time, G7 finance ministers issued a joint statement committing themselves to do “whatever it takes” to protect the international financial system.
However, as Cointelegraph reported, loss compensation in the form of “unlimited” money printing is sounding the alarm for some.
Commenting on the Federal Reserve’s liquidity boost, Wall Street veteran Caitlin Long argued that “the last vestige of capitalism died in the United States”.
“The Fed’s monetization of America’s debt is now unlimited,” she tweeted on Monday.
“The nationalization of the U.S. capitalists, a process begun in 1968, is now complete. This outcome was predictable (the virus was only a trigger). The Fed’s balance sheet exceeds $10 billion this week”
Filbfilb: “It’s hard to be optimistic in general”
Meanwhile, Bitcoin traders remained firmly risk-averse. Cointelegraph Markets analyst filbfilb said he was holding an all-cash position while waiting for a stronger close.
“Technically it is difficult to be upbeat overall while staying below the 100 and 20 week moving averages,” he told subscribers to his Telegram trading channel.
“In a reasonable change, we will see a reversal, but if the volume in equilibrium breaks up every day, I will see it as a sign of strength”
Bitcoin was up 30% from the same time last week, and its profits have reduced its year-to-date losses to just 6.9%.