In brief

  • Bitcoin price fell down to around $9,000 on Monday morning.
  • It has since recovered and is back up at $9,364.96.
  • It is not known what caused this slow week for Bitcoin but one measure might be the stock market, which has boomed in recent weeks.

Bitcoin this week held firm after a disastrous start on Monday. As of Sunday, June 21, its price is $9,364.96, according to data from CoinMarketCap.

That’s a huge recovery from Monday’s dip, in which prices fell in the early morning from around $9,390 to around $9,000. 

Crypto traders in the US and Europe quickly dealt with the damage as soon as they’d finished their breakfast; Bitcoin’s price rose to around $9,500 by the end of the day, then to highs of $9,564 by Tuesday morning. 

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Bitcoin didn’t manage to sustain its peak during the rest of the week, but nothing terrible happened to its price, either. On Wednesday, the price fell by almost $100 in around 30 minutes, from $9,417 to $9,328, but the price quickly crept up again to $9,480 the next day. 

 

So, why such a slow week for Bitcoin in a time of global crisis? Post-halving hype subsided? Economy doing weirdly well? No huge second wave for coronavirus (apart from a few pockets)? 

Who knows? One measure might be the stock market, which has boomed in recent weeks. The S&P recently hit levels previously seen at the end of December 2019, well before the coronavirus pandemic hit and global markets plummeted by 34%. (Mark Cuban, billionaire investor and Bitcoin critic said the stock market is just like the dot-com bubble of the late 90s).

There was a huge dip on Thursday last week—the Dow Jones Industrial Average lost over 1,800 points in a single day, the worst since its crash in the middle of March—likely caused by fears about a second wave. Bitcoin crashed that day too, from highs of around $9,930 to lows of $9,293 (before a recovery later on). 

Should Bitcoin continue to track the stock market, an ETF may make sense. Who knows, with SEC head and Bitcoin ETF-basher Jay Clayton slated to become the next Attorney General for Wall Street, his successor might just approve one. 

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Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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