Today Bitcoin and gold moved higher, pushing investors to bet on the anticipated launch programs to stimulate the economy by Central banks. The Bank of Japan has raised hopes for an infusion of liquidity into the financial system to the aftermath of the outbreak of coronavirus. Italy, in turn, promised to similar compensatory measures 3.6 billion euros. The reserve Bank of Australia expects Tuesday’s rate cut. There is an assumption about the reduction in March the base rate by 50 points. Cheap loans can give investors additional money to support their investment portfolios and diversify portfolios with Bitcoin will affect the continuation of the uptrend.
Today Bitcoin responded with a growth of 2.84 per cent, rising to level 8 $ 845 during the European session the spot market and the futures CME on BTC/USD rose by 3.57 percent, which indicates the resumption of the bullish sentiment in the beginning of the new week.
Bitcoin futures on CME. Source: TradingView.com
Gold rebounded 1.56 percent and reached the price of $ 1611 per ounce. Gold futures on the COMEX rose by 1.89 percent, after a desperate and indiscriminate sales last week.
It should be noted that on March 1, the speed of the hashing Bitcoin has reached a historic high. The growth of aggregate computing power that miners emit to check and maintain the network, indicates that the miners believe in the profitability of mining and enhance network security.
According to the monitoring Blockchain.com speed hashing Bitcoin as of March 1 stood at just over 136 264 980 TH/s.
Why, despite the recent crossing of the BTC price and the 200-day moving average formed a Golden cross, which traders consider a strong bullish indicator, the bullish rally last week collapsed.
Against the backdrop of worsening political and pandemic situation in the world and the collapse of the stock market Bitcoin fell, correlating with the gold market, and this destroyed the idea of forming a new shelter value in Bitcoin.
Thus the large traders and investors, losing faith in securities and commodities, did consider Bitcoin and gold as a refuge from the shocks, but was just speculating Nan them by buying at minimum and selling at maximum price in cash to cover losses in other markets. This happened with gold in 2008.