Bitcoin, Stocks Recover Despite Renewed COVID Concerns

While the markets started the week off in a panic, cooler heads appear to have prevailed—at least for now. The S&P 500 jumped 56 points today, an increase of 1.71%, and the Dow Jones is likewise up 291 points so far (1.10%).

Meanwhile, Bitcoin similarly bounced back: BTC is currently trading for a price of $13,600, up 3.03% on the day.

And while it’s too early to say if this is the start of a new trend or simply an upward correction following an overreaction from traders and investors, global markets have also responded in kind, with very few stocks today recording significant losses.

Most market analysts attribute the dip earlier this week to reports of increased coronavirus (COVID-19) cases throughout the world, particularly in the United States, Brazil, and the UK.

In France, President Emmanuel Macron ordered a second lockdown to prevent another COVID outbreak—and, as we’ve learned this year, markets don’t like lockdowns. The threat of further economic slowdowns still looms.

In the crypto markets, which some still regard as a potential “safe haven” in times of economic uncertainty, Bitcoin investors saw their crypto asset of choice appreciate by more than 3%. For now, that $13,000 per coin price line is holding steady, leading to further optimism among traders.

At the moment, Bitcoin remains in a bullish channel and doesn't appear to be breaking from the trend it began following the March crash. The dip in price earlier this week was arguably a good thing for the market, since it served to temper some of that bullish enthusiasm and potentially avoid the danger of creating (and bursting) a small bubble after an accelerated rally.

With the US election around the corner, the next few days will be, er, interesting to watch. The outcome of the election will play a significant role for markets over the next several months. And Bitcoin is no exception.