Bitcoin (BTC) jumped over $100 as Wall Street opened on March 24, markets broadly gaining amid hope of the United States agreeing a $2 trillion coronavirus rescue package.
Cryptocurrency market daily overview. Source: Coin360
BTC price steadies as stocks bounce
Data from Coin360 and Cointelegraph Markets showed BTC/USD circling $6,700 at press time on Tuesday — up 7% on the day.
Stock markets reversed Monday’s losses — the Dow Jones opened up 6.1%, while the S&P 500 was 5.3% higher.
Bitcoin 1-day price chart. Source: Coin360
The week had begun with turmoil as the U.S.’s two major political parties repeatedly blocked an aid package that aims to bail out the faltering economy. Overnight, however, Treasury Secretary Steven Mnuchin said that talks had seen “a lot of progress.”
At the same time, G7 finance ministers issued a joint statement pledging to do “whatever is necessary” to protect the international financial system.
As Cointelegraph reported, however, compensating losses in the form of “unlimited” money printing is causing alarm bells to ring for some.
Commenting on the Federal Reserve’s liquidity drive, Wall Street veteran Caitlin Long argued that “the last vestige of capitalism died in the U.S.”
“Fed's monetization US debt is now unlimited,” she tweeted on Monday.
“Nationalization of US capital mkts-a process started in 1968-is now complete. This result was predictable (virus was just trigger). Fed balance sheet tops $10trn this wk.”
Filbfilb: “It’s difficult to be overall bullish”
Bitcoin traders meanwhile remained firmly risk-averse. Cointelegraph Markets analyst filbfilb said that he was fully in cash while waiting for a stronger close.
“Technically it's difficult to be overall bullish while we remain below the 100 and 20 WMAs,” he told subscribers of his Telegram trading channel.
“Reasonable change we will see a pull back, but should on-balance volume break to the upside on the daily I will see it as a sign of strength.”
Bitcoin was up 30% versus the same time last week, its gains having reduced its year-to-date losses to just 6.9%.