Cryptocurrency Market Update: Bitcoin and crypto market to rally on COVID-19 economic crisis
- Ripple CEO Brad Garlinghouse believes the stimulus package will affect the US dollar.
- Gold rallied after the 2008 financial crisis; the current financial crisis could positively impact Bitcoin.
- Bitcoin price brief rally stalls short of $10,000; consolidation set to continue in the near term.
The cryptocurrency market is back in the red after a brief run upwards on Wednesday. The king of the digital assets rallied towards $10,000 after majestically breaching the hurdle at $9,900. BTC/USD reached an intraday high of $9,977 before reversing the trend downwards. At the moment, BTC has suffered a 0.77% loss on the day to trade at $9,815. Support is anticipated at $9,800 but if push comes to shove lower support areas at $9,600 and $9,400 will come in handy.
Ethereum, the largest altcoin in the market continues to broadcast its correlation with Bitcoin price. As Bitcoin rallied towards $10,000, Ether jumped to test $250. ETH/USD also reversed the trend downwards on failing to break above the resistance. At the time of writing, Ethereum is trading at $246 after losing 0.73% of its value on the day.
Ripple is in the red despite not being able to rally like Bitcoin and Ethereum. XRP/USD upside has remained limited at $0.2050. On the downside, support is established at $0.20. Consequently, we say that XRP is comfortable settling for consolidation at above $0.20. The digital asset is also facing selling pressure as well as expanding volatility.
Bitcoin was born in global financial crisis – Ripple CEO Brad Garlinghouse
The CEO of the blockchain startup, Ripple reckons that the ongoing economic turmoil around the globe is setting up Bitcoin and other cryptocurrencies for a rally. Garlinghouse recently said in a video published on YouTube that the stimulus package in the United States that has hit $3 trillion will eventually affect the dollar. He reckons “that in some emerging markets” exchange rates have already started shifting. Just as gold rallied due to the financial crisis in 2008, Bitcoin and the entire crypto market was also going to benefit from the current economic crisis.
Gold has been a safe-haven asset in lots of ways. It did drop during the beginning of the 2008 liquidity crisis, but then you saw it make a big run and I think we’re going to see a similar trajectory and a similar opportunity around the crypto market overall.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
