Another week, another round of Crypto Tidbits. Bitcoin has been one of the best-performing assets in financial markets over the past week, managing to rally as high as $9,500 — over 25% higher where it started this week. Altcoins, interestingly, have underperformed the market leader, with Ethereum and XRP both gaining around 10% over the past seven days. Crypto’s strength this week comes as the stock market has started to stagnate in the 2,800-2,900 point range, seemingly playing with the idea of a reversal as the economic outlook remains dismal, with a total of 30 million Americans filing for unemployment over the past month. Jerome Powell, Chairman of the Federal Reserve, went as far as to say that the U.S. economy is currently in its worst rut in history due to the outbreak of COVID-19. The recovery will not be V-shaped, Powell added, asserting that it may take a while for life to return to pre-virus levels due to the long-lasting effects of the shutdown of the world’s biggest economic powerhouse. Whatever the case, analysts are still bullish on Bitcoin. Roch Rosenblum, the co-head of trading at GSR, remarked to Bloomberg that the ongoing BTC rally is predicated on the macroeconomic environment: “This latest run past $8,000 is as much about positive macro sentiment as it is about the upcoming halving. We’re starting to have a lot more certainty, as more countries begin to share their plans to reopen the economy in May.” Chart from Coin360.io This optimism was echoed by Zac Prince, a co-founder of crypto startup BlockFi, who said that the “current market dynamics are driving a bolstered interest [for] digital currency.” These dynamics he was referencing was the Federal Reserve’s commitment to money printing and the growth in stablecoins. Bitcoin price is too low imo — Bitcoin (@Bitcoin) May 1, 2020 ?? Milestone! 100k slots at Topaz testnet! ?? ??24.4k validators ??3200 finalized epochs ??90% participation ??@prylabs controls less than 53% of the network ??Some nodes with 300 peers pic.twitter.com/LDZxiC8a0r — Terence Tsao (@terencechain) May 1, 2020Related Reading: Crypto Tidbits: Bitcoin Surges to $7,800, More U.S. Stimulus, Tether Erupts
Bitcoin & Crypto Tidbits
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Crypto Tidbits: Bitcoin Hits $9ks, a16z Raises $500M Crypto Fund, Ethereum 2.0 Nears was last modified: May 2nd, 2020 by Nick Chong