Bitcoin clocked highs near $9,600 Tuesday morning, having trapped bears on the wrong side of the market with a brief dip below $9,000 on Monday.
Analysts say a risk reset in the traditional markets fueled rise from $8,900 to $9,580 in the last 24 hours. “Bitcoin has regained poise, possibly tracking the recovery in global stock markets,” said Asim Ahmad, co-chief investment officer at London-based Eterna Capital.
Major European equity markets are reporting gains of over 2% at press time, while futures tied to the S&P 500 are up 1.2%, according to . The situation was different 24 hours ago when S&P 500 futures 2% due to renewed fears over the economic effects of the coronavirus pandemic.
Sentiment on Wall Street turned positive during yesterday’s U.S. trading hours after the it would start buying yet more corporate bonds. The S&P 500 ended the day with a 0.83% gain. The risk appetite improved further during Tuesday’s Asian hours after the Trump administration is preparing a near $1 trillion infrastructure proposal.
Most notably, the cryptocurrency crashed from $10,000 to $3,867 in the first half of March, as stock markets cratered at the prospect of a coronavirus-induced recession. In the following five weeks, both stocks and bitcoin witnessed solid recovery rallies.