Bitcoin, stock markets react to signs of hope

The new – and often cited – connection between bitcoin (BTC) and global dynamics does not necessarily imply that they fail together. Sometimes, this connection also implies a common ascent. And this appears to be the case on Monday, as positive coronavirus war data offer markets hope that better days can come soon.

Opening of the markets of the week

The price of bitcoin on the first day of the week came close to $ 7,300, with a 7% gain over the previous 24 hours. The move began during the trading hours of the Asian stock markets while the Japanese Nikkei index rose 4.2%.

Futures contracts on the Dow Jones Industrial Average also had some relief at the same time, indicating a gain of over 700 points when New York traders heard the opening bell.

Part of this optimism in the stock and cryptocurrency markets stems from some glimmers of hope on the war front of the coronavirus. "It appears that we are projecting data on actions that could indicate that some of the European countries have passed the peak of contagions," he said Dave Vizsolyi, head of trading at the cryptocurrency trading company DV Chain, based in Chicago.

Signs of progress

New cases of daily contagion are slowing down in countries such as Italy, where they remained in the range of 3,000 after March 30 (over 6,500 new cases were reported at the peak on March 21).

New York, the hardest hit state in the United States, has seen a slight drop in coronavirus-related deaths in the past few hours. This is not to say that the week promises to be simple in the United States, where there are more than 300,000 cases, a quarter of the world total.

"This will be the hardest and saddest week in most Americans' lives," said a weapon surgeon, General Jerome M. Adams on Fox News over the weekend. "This will be our Pearl Harbor moment, our 9/11 moment, only it will not be located. It will happen across the country. ”

However, his commander-in-chief, President Donald Trump, has taken an optimistic approach, undoubtedly proclaiming "LIGHT AT THE END OF THE TUNNEL" on his favorite social media, Twitter.

Gloomy horizon

However, some in the cryptocurrency markets are not sure if the worst is all behind. Paxos' exchange CEO Chad Cascarilla has warned that there will be a gloomy future if the fiscal and monetary stimulus proves too little, too late.

Cascarilla sees a probability of around 25% that it will be necessary for the United States to declare a bank holiday (an extraordinary closure of the national banking system) similarly to how it was done in the Great Depression, and even to operate some nationalization in the financial sector.