Bitcoin (BTC) abruptly moved higher on March 23, beating $6,000 as global markets reacted to fresh stimulus plans from the United States Federal Reserve.
Cryptocurrency market daily overview. Source: Coin360
BTC bounces with Wall Street yet to open
Data from Coin360 and Cointelegraph Markets tracked BTC/USD reaching 24-hour highs of $6,310 on Monday — daily gains of almost 5%.
Current levels put Bitcoin back in the position in which it traded before a downturn caught markets on Sunday.
Bitcoin 1-day price chart. Source: Coin360
Despite the enormity of the money printing exercise at stake, the Federal Reserve’s latest plans to provide unlimited liquidity appeared to buoy fragile markets. One part will be a $300 billion scheme to “support the flow of credit” throughout the economy.
“While great uncertainty remains, it has become clear that our economy will face severe disruptions,” part of a statement quoted by CNBC reads.
Previously, U.S. futures had collapsed 5% in just three minutes to trigger an automatic shutdown.
Wall Street was still closed at press time, as traders waited to see if preliminary good news could prevent a third “Black Monday” event in a row.
While opinions remain mixed as to how Bitcoin would continue to react to the new financial crisis, cautious optimism was beginning to hit analysts.
As Cointelegraph reported, for statistician Willy Woo, the cryptocurrency was already showing signs of “decoupling” from traditional markets as the week began. Another week’s trading was however needed to confirm this, he argued.
Bitcoin’s recovery has remained extraordinary. In the space of just eleven days, BTC/USD has gained 70% — firmly beating any other major asset.