The past hours have seen a marked Bitcoin breakout past the psychologically significant $8,000 line. This is further solidifying the bullish Bitcoin market performance seen during the past week. However, as this Bitcoin rally broke the $8,000 barrier, the traditional stock market saw a downturn.
Bitcoin rally recently reached an intraday high of $8,265
At the time of writing, Bitcoin is currently trading just above the $8,000 line, at $8,003. Although this is a massive increase just from yesterday’s opening price of $6,971 it still represents a slight slump from its intraday high. In fact, Bitcoin touched $8,265 a little over an hour ago, meaning that trading above $8,000 has been more than a blip on the radar.
Nevertheless, these gains are even more massive if put in a bit of context. The recent Bitcoin upswing means that Bitcoin has increased by over 35% just over the past seven days. Consequently, this Bitcoin rally broke not only the $8,000 barrier but also any lingering reminders of the cryptocurrency winter.
Furthermore, this marked increase in the price of Bitcoin has also been reflected in the rest of the cryptocurrency market. Virtually all major coins have seen similar price increases, and the market boards are largely in the green.
Stock markets tremble as trade war heats up
However, it should be noted that things are not looking as bright when it comes to the traditional stock market. Mounting fears over an escalating trade war between the US and China has weighed heavily on stock indexes around the world.
Most recently, China decided to retaliate against a new series of US-imposed tariffs. This came in the form of Chinese tariffs on approximately $60 billion worth of US goods. The increasing uncertainty related to this caused the Nasdaq Composite to fall 269,92 points (3.41%) yesterday. In fact, this constituted the single largest drop of 2019.
In other financial news, oil futures have also reported significant losses. This is the case both for Brent crude futures and US West Texas Intermediate crude futures. Such disappointing performance is likely to also dampen the stock market performance.
Stock market uncertainty could drive investors towards cryptocurrencies
As such, that a Bitcoin rally broke $8,000 should not be all too surprising. Cryptocurrency is increasingly becoming an attractive alternative for investors to balance and diversify their financial portfolios.
Consequently, this type of stock market uncertainty could, therefore, potentially drive more investors towards cryptocurrencies. It remains to be seen whether Bitcoin remains above $8,000 or dips below it in the hours to come.
A slight rebound could be necessary in order to consolidate these massive intra-week gains, and also appears quite likely. However, that the past week’s Bitcoin rally broke $8,000 has now shown that investor appetite for cryptocurrencies seems to be reawakening.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.