Over the last 24 hours, crypto markets in the world shot upwards, registering a $14 billion surge. The jump in the crypto market cap saw the value reach $182.62 billion at precisely 11.47 a.m on Tuesday, 24th March, Singapore time.
According to Coinmarketcap.com, Bitcoin registered a 16.36 % surge within the 24 hours and was trading at $6788.11 at the time of writing. Other digital coins also registered an increase in value with Ethereum and XRP trading at 14.8 % and an 8.06 % increase respectively.
Crypto Values Increase as Stock Markets Remain Under Pressure
Earlier this month, both cryptocurrency markets and stock markets suffered a severe beating, following the outbreak of the global pandemic, CoVID-19. However, the events of the last 24 hours show that the crypto market could be experiencing an improvement, even as the stock markets continue to suffer.
On 8th March, a plunge in the oil prices saw the value of the crypto markets fall by over $26 billion. The massive oil plunge created an immense selling pressure in the market, which resulted in a 48% crash of the Bitcoin prices.
The bullish behavior in the crypto markets came after the US Federal Reserve announced some new programs to keep the crypto markets going among the global crisis. The unexpected announcement will see the Federal Reserve keep buying assets to help keep the markets functional. The barrage of programs will also see the Fed make its move to corporate bonds for the first time and purchase the securities through primary and secondary markets, as well as through funds traded on exchanges.
Following the announcement by the Federal Reserve, stocks in the Asian market also registered an increase in value on Tuesday morning. Japan’s and South Korea’s shares were the market’s biggest gainers, recording a 7% and 8.6% jump, respectively. The announcement also saw an increase in the oil prices, although analysts expect the industry to keep struggling, as more airlines continue to restrict their flight schedules.
Cryptocurrencies as Safe Haven Assets
Although the performance of the crypto markets over the last 24 hours provides some hope, we cannot ignore the fact that crypto performance during this global pandemic has been unsatisfactory. Previously, cryptos were considered to be safe-haven assets that would not conform to the financial market price factors.
If the last few weeks are anything to go by, Bitcoin’s identity as the ‘digital gold’ is questionable. The cryptocurrency is trading at lower prices than at the beginning of the year, and it is behaving more like a risky asset.
Crypto enthusiasts now have varying expectations on Bitcoin’s price trend, especially as the May halving approaches. However, we can only wait and see if the popular cryptocurrency will live up to its ‘safe haven’ reputation, seeing as it’s the coin’s first time in a global disaster.